STMicroelectronics Registers 28% Revenue Growth In Q2; Boosts FY22 Outlook

• STMicroelectronics NV (NYSE: STM) reported second-quarter FY22 revenue growth of 28.3% year-on-year to $3.84 billion, beating the consensus of $3.75 billion.

• Sales to OEMs increased by 31.7% Y/Y, and Distribution sales improved by 22.2% Y/Y.

• Automotive and Discrete Group (ADG) revenue rose 35.1% Y/Y to $1.45 billion. Analog, MEMS, and Sensors Group (AMS) revenue increased by 11.3% Y/Y to $1.13 billion. Microcontrollers and Digital ICs Group (MDG) revenue grew 39.5% Y/Y to $1.25 billion.

• Margins: The gross margin expanded 690 bps to 47.4%. Improved product mix and favorable pricing drove the margin.

• The operating margin expanded by 990 bps to 26.2%.

• EPS of $0.92 beat the consensus of $0.80.

• STMicroelectronics generated $1.06 billion in operating cash flow and held $3.44 billion in cash and equivalents.

• Outlook: STMicroelectronics sees Q3 revenue at the mid-point of $4.24 billion, up 32.6% Y/Y.

• STMicroelectronics sees a Q3 gross margin of 47%.

• STMicroelectronics raised FY22 revenue outlook from $14.8 billion - $15.3 billion to $15.9 billion - $16.2 billion.

• Price Action: STM shares traded higher by 0.19% at $36.40 on the last check Thursday.

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