STMicroelectronics Registers Over 24% Revenue Growth In Q4; Shares Capacity Ramp Up Plans

STMicroelectronics NV (NYSE: STM) reported fourth-quarter FY22 revenue growth of 24.4% year-on-year to $4.42 billion, beating the consensus of $4.41 billion.
Sales to OEMs increased by 26.8% Y/Y, and Distribution sales improved by 19.5% Y/Y.
Automotive and Discrete Group (ADG) revenue rose 38.4% Y/Y to $1.70 billion. Analog, MEMS, and Sensors Group (AMS) revenue increased by 7% Y/Y to $1.34 billion. Microcontrollers and Digital ICs Group (MDG) revenue grew 29.1% Y/Y to $1.38 billion.
Margins: The gross margin expanded by 230 bps to 47.5%. Improved product mix and favorable pricing drove the margin.
The operating margin expanded by 420 bps to 29.1%.
EPS of $1.32 beat the consensus of $1.13.
STMicroelectronics generated $603 million in free cash flow and held $4.52 billion in cash and equivalents.
Q1 And FY23 Outlook: STMicroelectronics sees Q1 revenue of $4.20 billion, down 5.1% Y/Y, plus or minus 350 bps.
The company sees a Q1 gross margin of 48.0%, plus or minus 200 bps.
STMicroelectronics sees FY23 revenues of $16.8 billion - $17.8 billion.
For 2023, it plans to invest $4.0 billion (FY22: $3.52 billion) in capex, mainly to increase 300mm wafer fabs and silicon carbide manufacturing capacity.
Price Action: STM shares closed higher by 2.10% at $43.33 on Wednesday.

Momentum16.22

Growth21.40

Quality15.60

Value85.32

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