STMicroelectronics
Revenues increased slightly in the third quarter
ST reported third quarter net revenues of $4.43 billion, gross margin of 47.6%, operating margin of 28.0%, and net income of $1.09 billion or $1.16 diluted earnings per share.
With this numbers Q3 net revenues increased 2.5% year-over-year. As expected, the revenue performance was driven mainly by continued growth in Automotive, partially offset by lower revenues in Personal Electronics.
Jean-Marc Chery, ST President & CEO, commented: »Q3 net revenues of $4.43 billion came in above the midpoint of our business outlook range, and Q3 gross margin of 47.6% was slightly above guidance.«
He said: »First nine months net revenues increased 11.1% year-over-year, driven by growth in ADG and MDG Product Groups, partially offset by a decline of AMS Product Group. Operating margin was 27.6% and net income was $3.14 billion. Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.30 billion, declining year-over-year and sequentially by about 3%; gross margin is expected to be about 46%.« The midpoint of this outlook translates into full year 2023 revenues of about $17.3 billion, representing 7.3% year-over-year growth and a gross margin of about 48.1%.
Third Quarter 2023 Summary Review
Net revenues totaled $4.43 billion, representing a year-over-year increase of 2.5%. On a year-over-year basis, ADG (Automotive and Discrete Group) and MDG (Microcontrollers & Digital ICs Group) revenues increased 29.6% and 2.8% respectively, while AMS (Analog, MEMS & Sensors Group) decreased 28.3%. Year-over-year net sales to OEMs and Distribution increased 2.1% and 3.4%, respectively. On a sequential basis, net revenues increased 2.4%, 130 basis points better than the mid-point of ST’s guidance. ADG and AMS both reported an increase in net revenues on a sequential basis, and MDG slightly decreased, as expected.
