STMicroelectronics (STM)

[ap17]

STMicroelectronics +2% on Q2 revenue beat, strong guidance

STMicroelectronics (NYSE:STM) reports Q2 results with in-line EPS and a revenue beat. Automotive and Discrete Group led product revenue with $755M (+5% Y/Y) followed by Analog and MEMES Group at $482M (+28%), Microcontrollers and Digital ICs Group at $612M (+10%), and Other at $74M.

Gross margin: 38.3%

Shipments were up in every region except the Americas, which decreased 7.2%. Asia Pacific had double-digit shipment growth, up over 21%.

The quarter had $6M in impairment and restructuring charges related to set-top box restructuring announced early last year.

Cash: Cash from operating activities was $369M and FCF was $52M.

Q3 outlook: revenues expected up about 9% sequentially or about 16.6% on the year for the midpoint, which puts the number around $1.98B compared to the consensus estimate of $2.07B.

Press release

STM shares are up 2.04% premarket.