Strong Second-Quarter Results for STMicroelectronics

STMicroelectronics NV has announced its financial results for the second quarter, showcasing impressive growth in revenue and profit, particularly in its automotive businesses.

Revenue and Profit Surge

In the three months ending June 2022, STMicroelectronics posted a net profit of $1.00 billion, a significant increase from the $867 million reported in the same period last year. This surge in profit was fueled by a 13% rise in revenue to $4.33 billion, surpassing the company's second-quarter expectations. Notably, the automotive business experienced outstanding growth, with revenue spiking by 34%. While the microcontrollers segment also saw revenue growth, lower revenues in personal electronics partially offset this positive trend, according to STMicroelectronics.

Improving Profitability

STMicroelectronics witnessed a remarkable 16.5% increase in gross profit for the second quarter, reaching $2.12 billion. Moreover, both the gross margin, at 49.0%, and the operating margin, at 26.5%, showed improvement compared to the previous year.

Future Projections

Looking ahead to the third quarter, STMicroelectronics anticipates revenue of approximately $4.38 billion, with a projected gross margin of 47.5%. For the full year, the company aims for revenue of $7.4 billion, plus or minus $150 million, and a gross margin surpassing 48%.

These strong financial results reinforce STMicroelectronics' position as a leader in the semiconductor industry, particularly in automotive technology. With its commitment to innovation and continuous growth, STMicroelectronics is poised to maintain its upward trajectory in the coming months.