STMicroelectronics Reports 3Q 2022 Financial Results

STMicroelectronics reported U.S. GAAP financial results for the third quarter ended Oct. 1, 2022.  ST reported third quarter net revenues of $4.32 billion, gross margin of 47.6%, operating margin of 29.4%, and net income of $1.10 billion or $1.16 diluted earnings per share. Net revenues showed a year-over-year increase of 35.2%. On a year-over-year basis, the company recorded higher net sales in all product groups and sub-groups.

“First nine months net revenues increased 27.2% to $11.70 billion, driven by growth in all product groups and sub-groups. Operating margin was 26.9% and net income was $2.71 billion,” said Jean-Marc Chery, STMicroelectronics president and CEO.

“ST’s fourth quarter outlook, at the mid-point, is for net revenues of $4.40 billion, increasing year-over-year by 23.7% and sequentially by 1.8%; gross margin is expected to be about 47.3%,” added Chery. “The midpoint of this outlook translates into full year 2022 net revenues of about $16.10 billion, representing a 26.2% year-over-year growth and gross margin of about 47.3%, in line with the plan we outlined in July.”

Gross profit totalled $2.06 billion, a year-over-year increase of 54.7%. Gross margin of 47.6%, 60 basis points above the mid-point of the company’s guidance, increased 600 basis points year-over-year, principally due to favorable pricing and improved product mix, partially offset by the inflation of manufacturing input costs.

Operating income increased 110.1% to $1.27 billion, compared to $605 million in the year-ago quarter. The company’s operating margin increased 1,050 basis points on a year-over-year basis to 29.4% of net revenues, compared to 18.9% in the 2021 third quarter.

Free cash flow (non-U.S. GAAP) was $676 million in the third quarter, compared to $420 million in the year-ago quarter.