STMicroelectronics has shared U.S. GAAP financial results for the second quarter of 2021.
ST reported second-quarter net revenues of $2.99 billion, gross margin of 40.5%, operating margin of 16.3%, and net income of $412 million or $0.44 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented, “Q2 net revenues and gross margin came in at the high-end of our business outlook range driven by continued strong demand globally.”
“On a year-over-year basis, Q2 net revenues increased 43.4%. Q2 gross margin of 40.5% and operating margin of 16.3% improved 550 and 1,120 basis points, respectively, and net income increased 357.2% to $412 million.”
“First half net revenues increased 39.1% year-over-year, driven by growth in all product groups, except the RF Communications sub-group. The operating margin was 15.5% and net income was $776 million.”
“ST’s third-quarter outlook, at the mid-point, is for net revenues of $3.20 billion, increasing year-over-year and sequentially by 20.0% and 7.0%, respectively; gross margin is expected to be about 41.0%. We will now drive the Company based on a plan for FY21 revenues of $12.5 billion, plus or minus $100 million, a year-over-year increase of 22.3% at the mid-point. This growth is expected to be driven by strong dynamics in all the end markets we address and our engaged customer programs. Our CAPEX plan will now be about $2.1 billion for 2021.”
Net revenues totaled $2.99 billion, a year-over-year increase of 43.4%. On a year-over-year basis, the Company recorded higher net sales in all product groups except the RF Communications sub-group.
Year-over-year net sales to OEMs and Distribution increased 38.4% and 53.1%, respectively. On a sequential basis, net revenues decreased 0.8% but were 300 basis points above the mid-point of the Company’s guidance. ADG and MDG reported increases in net revenues on a sequential basis while AMS decreased.
Gross profit totaled $1.21 billion, a year-over-year increase of 66.1%. Gross margin of 40.5% increased 550 basis points year-over-year, mainly driven by lower unloading charges, manufacturing efficiencies, favorable pricing and improved product mix partially offset by negative currency effects, net of hedging.
The second quarter gross margin was 100 basis points above the mid-point of the Company’s guidance mainly due to more favorable pricing and improved product mix.
Operating income increased 358.8% to $489 million, compared to $106 million in the year-ago quarter. The Company’s operating margin increased 1,120 basis points on a year-over-year basis to 16.3% of net revenues, compared to 5.1% in the 2020 second quarter.