(RTTNews.com) - STMicroelectronics NV (STM), a semiconductor company, reported Wednesday that its first-quarter net income attributable to parent company climbed to $239 million from $108 million last year. Earnings per share were $0.26, higher than $0.12 a year ago.
On average, three analysts polled by Thomson Reuters expected earnings of $0.26 per share. Analysts' estimates typically exclude special items.
Net revenues of $2.23 billion climbed 22.2% from prior year's $1.82 billion. First-quarter net revenues decreased 9.8% sequentially.
Gross margin was up significantly year-over-year to 39.9% from 37.7% last year.
Carlo Bozotti, STMicroelectronics President and Chief Executive Officer, said, "We started 2018 with another quarter of double-digit, year-over-year sales growth across all product groups and regions."
Looking ahead, the Company expects second quarter 2018 revenues to increase about 1.5% on a sequential basis, plus or minus 3.5 percentage points. Gross margin is expected to be about 40.0% plus or minus 2.0 percentage points.
Bozotti added, "Despite the weak demand we are experiencing for smartphones in the first half of 2018, we anticipate second quarter and first half revenues to grow year-over-year about 17.5% and 19.8%, respectively, at the mid-point of our guidance range. This will be driven by the continued better than seasonal sales trends in Automotive, Industrial and Internet of Things applications."
For the second half of the year, the company said it sees healthy demand, with a strong backlog across all product groups, end markets, including smartphones, and regions.
Further, a cash dividend of $0.24 per common share payable in equal quarterly installments proposed to the 2018 Annual General Meeting of Shareholders.
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