STMicroelectronics Reports 2023 First Quarter Financial Results

STMicroelectronics reported U.S. GAAP financial results for the first quarter ended April 1, 2023. ST reported first quarter net revenues of $4.25 billion, gross margin of 49.7%, operating margin of 28.3%, and net income of $1.04 billion or $1.10 diluted earnings per share.

“Q1 net revenues of $4.25 billion came in better than expected in Automotive and Industrial partially offset by lower revenues in Personal Electronics,” said Jean-Marc Chery, STMicroelectronics president and CEO. “Q1 gross margin of 49.7% was 170 basis points above the mid-point of our business outlook range mainly due to product mix in a price environment that remained favorable. On a year-over-year basis, Q1 net revenues increased 19.8%, operating margin increased to 28.3% from 24.7% and net income increased 39.8% to $1.04 billion.

“Our second quarter business outlook, at the mid-point, is for net revenues of $4.28 billion, increasing year-over-year by 11.5% and increasing sequentially by 0.8%; gross margin is expected to be about 49.0%.,” Chery added. “We will now drive the company based on a plan for FY23 revenues in the range of $17.0 billion to $17.8 billion.”

Gross profit totaled $2.11 billion, representing a year-over-year increase of 27.5%. Gross margin of 49.7% increased 300 basis points year-over-year, mainly due to product mix, favorable pricing, positive currency effects, net of hedging, partially offset by higher manufacturing costs. Operating income increased 36.9% to $1.2 billion, compared to $0.88 billion in the year-ago quarter.