Positive quarter for Stmicroelectronics despite the Covid-19 pandemic. The French-Italian company presented financial results for the third quarter ended September 26, 2020, during which it reported $2,67 billion in Net revenues (+4,4% year-over-year and +27,8% quarter-over-quarter), a gross margin at 36% (-190 basis points year over year), a operating margin at 12,3% and a Net income $242 million, or $0,26 per share after dilution, compared with $302 million a year ago and $90 million in Q2020 XNUMX.
As of September 26, the group highlights a net financial position of $662 million compared to $570 million as of June 27, 2020, with a liquid assets total of 3,53 billion dollars and a financial debt total of $2,87 billion.
“Our third quarter 2020 net revenues increased 27,8% sequentially, 690 basis points above the top of the forecast range,” he said. Jean-Marc Chery, president & ceo of Stmicroelectronics -. This revenue performance was due to significantly better-than-expected market conditions for the full quarter. The main factors that contributed to this result were the demand for Automotive products, the programs already underway with our customers in Personal Electronics and Microcontrollers. Third-quarter gross margin was at the midpoint of the range, including approximately 140 basis points of slack charges.
Broadening the horizon ai nine months, the semiconductor group closed the period with net revenues of $6,98 billion with a gross margin of 36,3%. The operating margin is instead at 9,5% while the net profit stands at 525 million dollars.
Stm has also made known the forecast for the fourth quarter. By the end of the year, revenues should grow by approximately 12% as an intermediate value compared to the previous quarter. “The growth, as expected, would concern all product groups, with the exception of the RF Communications sub-group – the CEO said -. Expected gross margin is around 38,5%, including around 70 basis points of underutilized capacity charges. For full year 2020, we now expect net revenues of approximately $9,97 billion at mid-point, corresponding to year-over-year growth of 4,3%, with double-digit operating margin performance.”
La MY BAG seems to have appreciated both the results and the forecasts for 2020 and at 11.10 STM achieved one of the best performances of the Ftse Mib (-0,5%), marking +1,1% at 29,26 euros.
