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STMicroelectronics Q3 Profit Surges - Quick Facts


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(RTTNews.com) - STMicroelectronics NV ( STM ), a semiconductor company, reported that its third-quarter net income attributable to parent company surged to $369 million or $0.41 per share from $236 million or $0.26 per share in the year-ago period.

Operating income for the quarter grew to $398 million from $281 million in the year-ago period. Operating margin increased 270 basis points on a year-over-year basis to 15.8 percent of net revenues, compared to 13.1 percent in the prior-year quarter.

Third-quarter net revenues rose 18.1 percent to $2.52 billion from $2.14 billion last year.

On average, analysts polled by Thomson Reuters expected the company to report earnings of $0.37 per share on revenues of $2.50 billion for the quarter. Analysts' estimates typically exclude special items.

According to the company, all product groups delivered revenue growth. Year-over-year sales to OEMs and Distribution were up 21.6 percent and 11.2 percent, respectively.

Looking ahead to the fourth quarter, STMicroelectronics forecast revenues to grow sequentially about 5.7 percent, plus or minus 350 basis points, thus translating into year-over-year revenue growth above 8 percent. Gross margin is expected to be about 39.8 percent, plus or minus 200 basis points.

Based on the fourth quarter guidance, the company anticipates full-year 2018 revenues to grow about 16 percent year-over-year, in line with its expectations shared in May at its Capital Markets Day. The company noted that this level of revenue growth will also drive strong improvements in operating margin and net earnings.


Read the original article on RTTNews (http://www.rttnews.com/2946555/stmicroelectronics-q3-profit-surges-quick-facts.aspx)


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This article appears in: Fundamental Analysis , World Markets , Stocks , Economy , Earnings
Referenced Symbols: STM ,



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