STMicroelectronics Reports 3Q 2023 Financial Results

STMicroelectronics N.V. reported U.S. GAAP financial results for the third quarter ended Sept. 30, 2023.

ST reported third quarter net revenues of $4.43 billion, gross margin of 47.6%, operating margin of 28.0%, and net income of $1.09 billion or $1.16 diluted earnings per share.

“Q3 net revenues of $4.43 billion came in above the midpoint of our business outlook range, and Q3 gross margin of 47.6% was slightly above guidance,” said Jean-Marc Chery, ST president and CEO. “Q3 net revenues increased 2.5% year-over-year. As expected, the revenue performance was driven mainly by continued growth in Automotive, partially offset by lower revenues in Personal Electronics.

“On a year-over-year basis, gross margin remained stable at 47.6%, while, as expected, operating margin decreased to 28.0% from 29.4% and net income was stable at $1.09 billion,” Chery added “First nine months net revenues increased 11.1% year-over-year, driven by growth in ADG and MDG Product Groups, partially offset by a decline of AMS Product Group. Operating margin was 27.6% and net income was $3.14 billion.

“Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.30 billion, declining year-over-year and sequentially by about 3%; gross margin is expected to be about 46%,” Chery concluded. “The midpoint of this outlook translates into full year 2023 revenues of about $17.3 billion, representing 7.3% year-over-year growth and a gross margin of about 48.1%.”

Net cash from operating activities was $1.88 billion in the third quarter compared to $1.65 billion in the year-ago quarter. Free cash flow (non-U.S. GAAP) was $707 million compared to $676 million in the year-ago quarter.