STMicroelectronics 4Q Net Profit Beat Estimates; Issues 1Q Outlook
January 28 2021 - 1:45AM
Dow Jones News
By Mauro Orru
STMicroelectronics NV on Thursday posted net profit for the
fourth quarter of 2020 ahead of analysts' expectations and issued
guidance for the first quarter of 2021.
The European chip maker said fourth-quarter net profit climbed
to $582 million from $392 million in the fourth quarter of 2019,
above estimates of $547.2 million, according to FactSet.
The company confirmed revenue for the period climbed to $3.24
billion from $2.75 billion.
STMicroelectronics said in early January that preliminary net
revenue of $3.24 billion exceeded its own guidance of $2.99
billion, plus or minus 350 basis points, thanks to demand for
smartphone components as well as automotive products and
microcontrollers.
Gross profit for the quarter rose to $1.25 billion from $1.08
billion with a gross margin of 38.8%, while operating income
increased to $657 million from $460 million with an operating
margin of 20.3%.
STMicroelectronics said it expects net revenue for the first
quarter of 2021 of $2.93 billion at the mid-point, with gross
margin at about 38.5%.
"For 2021, we plan to invest about $1.8 billion to $2 billion in
Capex to support the strong market demand and our strategic
initiatives," Chief Executive Jean-Marc Chery said.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
January 28, 2021 01:30 ET (06:30 GMT)
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