- STMicroelectronics N.V. (NYSE: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.
