STMicroelectronics Tops Q4 Consensus; Issues Positive Q1 Outlook

STMicroelectronics NV STM reported fourth-quarter FY21 revenue growth of 9.9% year-on-year to $3.56 billion, beating the consensus of $3.46 billion. Sales to OEMs remain unchanged, and Distribution sales improved 38.7% Y/Y.
Automotive and Discrete Group (ADG) revenue rose 28.6% Y/Y to $1.23 billion. Analog, MEMS, and Sensors Group (AMS) revenue declined 11.2% Y/Y to $1.26 billion. Microcontrollers and Digital ICs Group (MDG) revenue grew 23.7% Y/Y to $1.06 billion.
Margins: The gross margin expanded 640 bps to 45.2%. Improved product mix, manufacturing efficiencies, favorable pricing drove the margin.
The operating margin expanded by 460 bps to 24.9%.
EPS of $0.82 beat the consensus of $0.68.
STMicroelectronics generated $881 million in operating cash flow and held $3.52 billion in cash and equivalents.
Outlook: STMicroelectronics sees Q1 FY22 revenue of $3.50 billion, a decrease of 1.6% sequentially, plus or minus 350 basis points.
STMicroelectronics sees a gross margin of 45.0%, plus or minus 200 basis points.
Price Action: STM shares traded higher by 5.80% at $46.90 in the premarket session on the last check Thursday.

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