- The company expects to generate approximately $4.30 billion in net revenues during the fourth quarter.
STMicroelectronics reported its financial results for the third quarter of 2023, indicating increased net revenues and stable gross margins driven by growth in the automotive sector.
Net revenue for the third quarter jumped by 2.5% year-on-year to $4.43 billion with a gross margin of 47.6% and an operating margin of 28.0%, beating the market expectations of $4.38 billion. Net profit for the same period rose to $1.09 billion, translating to earnings of $1.16 per share.
The revenue performance was driven mainly by continued growth in the automotive sector but offset by lower revenues in personal electronics. By product group, Automotive and Discrete Group (ADG) saw revenue increase by 29.6% compared to the same quarter in the previous year. Analog, MEMS and Sensors Group (AMS) recorded a decline in revenue by 28.3% compared to the same quarter in the previous year. The Microcontrollers and Digital ICs Group (MDG) reported a relatively modest performance with an increase of 2.8% compared to the same quarter last year.
Commenting on the average outlook for the fourth quarter of the year, President and CEO Jean-Marc Chery said, “Our fourth quarter business outlook is for net revenues of $4.30 billion, declining year-over-year and sequentially by about 3%, gross margin is expected to be about 46%.”
The chipmaker revised its FY23 revenues outlook to $17.3 billion versus the prior $17.25 billion to $17.55 billion. “The average outlook translates into full 2023 revenues of about $17.3 billion, representing 7.3% year-over-year growth and a gross margin of about 48.1%,” said Chery.
The balance sheet showed total liquidity of $5.05 billion and total financial debt of $2.59 billion.
