StMicroelectronics runs on the Milan Stock Exchange despite the negative day for the Ftse Mib, down by 0,76% to 23.835 points, below the 24.035 at Monday's closing.
After the publication of accounts and outlooks better than market forecasts, the shares of the Italian-French group gained 4,36% to 18,42 euros at 10:52 on Wednesday morning with volumes exceeding 4,5 million units.
STM ended the first quarter of 2018 with net revenues of $2,23 billion, up 22,2% for the year, and net income of $239 million (or $0,26 per share), an annual increase of 131 million. The gross margin and the operating margin grew to 39,9% and 12,1% respectively compared to the same quarter of the previous year.
The Board has proposed a cash dividend of $0,24 per common share to be distributed in quarterly installments. “We started 2018 with another quarter of double-digit year-over-year growth across all product groups and geographic regions – commented the president and CEO Carlo Bozotti – The first quarter results were better than the midpoint of our guidance in terms of sales and gross margin on a sequential basis. We achieved a better-than-seasonal performance – continued Bozzotti – in the automotive and industrial sectors thanks to our application-oriented approach to Smart Driving and the Internet of Things, despite the unfavorable dynamics, expected and due to seasonality, for the smartphone applications". As for forecasts, the expectation is “year-on-year revenue growth of approximately 17,5% for the second quarter and approximately 19,8% for the first half, as an intermediate point of our guidance”.
Equita analysts hailed "better-than-expected results and guidance". “Overall – write the experts – we believe that the results have positive implications for the stock which had recently been penalized by the profit warnings of Taiwan Semiconductor and AMS”. The accounts, analysts conclude, could lead to a 2% increase in 2018 earnings per share forecast by market consensus.
