STMicroelectronics Clocks 18% Revenue Growth In Q1 Backed By Robust Demand For Microcontrollers

STMicroelectronics N.V. STM reported first-quarter FY22 revenue growth of 17.6% year-on-year to $3.55 billion, beating the consensus of $3.49 billion.
This revenue performance, driven by solid demand for microcontrollers, was partially offset by temporarily reduced operations at its Shenzhen, China, manufacturing facility due to the pandemic.
Sales to OEMs increased by 14.4% Y/Y, and Distribution sales improved 24% Y/Y.
Automotive and Discrete Group (ADG) revenue rose 20.5% Y/Y to $1.26 billion. Analog, MEMS, and Sensors Group (AMS) revenue increased by 0.4% Y/Y to $1.09 billion. Microcontrollers and Digital ICs Group (MDG) revenue grew 35.2% Y/Y to $1.2 billion.
Margins: The gross margin expanded 770 bps to 46.7%. Improved product mix and favorable pricing drove the margin.
The operating margin expanded by 1,010 bps to 24.7%.
EPS of $0.79 beat the consensus of $0.71.
STMicroelectronics generated $945 million in operating cash flow and held $3.39 billion in cash and equivalents.
Outlook: STMicroelectronics sees Q2 revenue, at the mid-point, of $3.75 billion, up 25.3% Y/Y.
STMicroelectronics sees Q2 gross margin of 46%, plus or minus 200 basis points.
STMicroelectronics sees FY22 revenue of $14.8 billion - $15.3 billion.
Price Action: STM shares traded higher by 1.55% at $37.35 in the premarket session on the last check Wednesday.

Overview Rating:

Speculative

0100

Earnings Calendar