STMicroelectronics has reported U.S. GAAP financial results for the second quarter ended July 2, 2022.
ST reported second-quarter net revenues of $3.84 billion, gross margin of 47.4%, operating margin of 26.2%, and net income of $867 million or $0.92 diluted earnings per share.
Jean-Marc Chery, STMicroelectronics President & CEO, commented:
- “Q2 net revenues and gross margin came in above the mid-point of our business outlook range driven by continued strong demand for our product portfolio.
- “On a year-over-year basis, Q2 net revenues increased 28.3%, operating margin increased to 26.2% from 16.3% and net income doubled to $867 million.
- “First half net revenues increased 22.9% year-over-year, driven by growth in all product groups and subgroups. Operating margin was 25.5% and net income was $1.61 billion.
- “ST’s third quarter outlook, at the mid-point, is for net revenues of $4.24 billion, increasing year-over-year by 32.6% and sequentially by 10.5%; gross margin is expected to be about 47.0%.
- “We will now drive the Company based on a plan for FY22 revenues in the range of $15.9 billion to $16.2 billion and gross margin to be about 47.0%.”
Net revenues totaled $3.84 billion, a year-over-year increase of 28.3%. On a year-over-year basis, the Company recorded higher net sales in its product groups and all sub-groups. Year-over-year net sales to OEMs and Distribution increased 31.7% and 22.2%, respectively. On a sequential basis, net revenues increased 8.2%, 240 basis points above the mid-point of the Company’s guidance. All product groups reported increases in net revenues on a sequential basis.
Gross profit totaled $1.82 billion, a year-over-year increase of 50.2%. Gross margin of 47.4% increased 690 basis points year-over-year, principally due to favorable pricing and improved product mix partially offset by inflation of manufacturing input costs and was 140 basis points above the mid-point of the Company’s guidance.
Operating income increased 105.4% to $1.0 billion, compared to $489 million in the year-ago quarter. The Company’s operating margin increased 990 basis points on a year-over-year basis to 26.2% of net revenues, compared to 16.3% in the 2021 second quarter.
By product group, compared with the year-ago quarter:
Automotive and Discrete Group (ADG):
- Revenue increased in both Automotive and in Power Discrete.
- Operating profit increased by 251.1% to $359.2 million. Operating margin was 24.7% compared to 9.5%.
Analog, MEMS and Sensors Group (AMS):
- Revenue increased in Analog, in MEMS and in Imaging.
- Operating profit increased by 42.1% to $268.4 million. Operating margin was 23.8% compared to 18.6%.
Microcontrollers and Digital ICs Group (MDG):
- Revenue increased in both Microcontrollers and in RF Communications.
- Operating profit increased by 106.6% to $424.7 million. Operating margin was 34.0% compared to 22.9%.
Net income increased to $867 million and diluted earnings per share to $0.92 compared to $412 million and $0.44, respectively, in the year-ago quarter.
In the second quarter, the company paid cash dividends to its stockholders totaling $54 million and executed a $87 million share buy-back as part of its current share repurchase program.
ST’s net financial position (non-U.S. GAAP) was $924 million at July 2, 2022 compared to $840 million at April 2, 2022 and reflected total liquidity of $3.44 billion and total financial debt of $2.52 billion.