STMicroelectronics Clocks 20% Topline Growth In Q1; Pricing Measures Drive Margins

• STMicroelectronics NV (NYSE:  STM) reported first-quarter FY23 revenue growth of 19.8% year-on-year to $4.25 billion, beating the consensus of $4.13 billion.

• Sales to OEMs increased by 17.5% Y/Y, and Distribution sales improved by 24.0% Y/Y.

• Automotive and Discrete Group (ADG) revenue rose 43.9% Y/Y to $1.81 billion. Analog, MEMS, and Sensors Group (AMS) revenue changed by (0.9)% Y/Y to $1.07 billion. Microcontrollers and Digital ICs Group (MDG) revenue grew 13.2% Y/Y to $1.37 billion.

• Margins: The gross margin expanded by 300 bps to 49.7%. Improved product mix and favorable pricing drove the margin.

• The operating margin expanded by 360 bps to 28.3%.

• EPS of $1.10 beat the consensus of $0.99.

• STMicroelectronics generated $206 million in free cash flow and held $4.52 billion in cash and equivalents.

• Outlook: STMicroelectronics sees Q2 revenue of $4.28 billion, up by 0.8% Q/Q, plus or minus 350 bps.

• The company sees a Q2 gross margin of 49.0%, plus or minus 200 bps.

• STMicroelectronics revises FY23 revenues outlook to $17.0 billion - $17.8 billion, up from the prior $16.8 billion - $17.8 billion (consensus $16.28 billion).

• Price Action: STM shares closed higher by 2.53% at $46.28 on Wednesday.

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This article STMicroelectronics Clocks 20% Topline Growth In Q1; Pricing Measures Drive Margins originally appeared on Benzinga.com

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