Stmicroelectronics soars on the Stock Exchange, after the publication of the preliminary results for the fourth quarter of 2021, which closed with revenues above expectations. By mid-morning, the shares of the Italian-French hi-tech company gained more than 5,5 percent, rising above the 45 euro per share level after having reached a maximum of 45,6 euro. More than 2 million pieces changed hands in just a few hours, compared to a 30-day average for the entire session of 2,48 million.
Driving the chip company's run are preliminary results for the fourth quarter of 2021, filed with net revenues up 11,2% on a sequential basis at $3,56 billion, a figure that exceeds the range announced to the market in late October. Going into detail, revenues are 140 basis points above the highest value of the range indicated. The prior forecast for fourth quarter 2021 net revenues was $3,40 billion, up 6,3% sequentially, plus or minus 350 basis points.
“We ended the fourth quarter of 2021 with net revenues above the forecast range and gross margin at or slightly above higher than expected, driven primarily by better-than-expected operating activities in a market that continues to be dynamic. Our full-year 2021 revenues reached $12,76 billion, an increase of 24,9% over full-year 2020, as a result of strong performance across all end markets we serve and programs already underway with our customers throughout the year,” said Jean-Marc Chery, president and CEO of StMicroelectronics.
“'We estimate that the preliminary results imply a positive surprise compared to fourth quarter/full 2021 estimates on sales/gross profit and EBIT of 5%/10%/19% (4Q21) and 1%/3%/6% (FY21) respectively”, commented the Equita analysts, recalling that “CEO Chery indicated that gross margin was at or slightly above the upper end of the outlook range, implying a record number at or slightly above 45% versus guidance of 43%, plus or minus 200 basis points (our estimate and 43% consensus).
Stm will publish the complete data on January 27th and, on that occasion, according to Equita, “it will probably provide guidance on 2022 capex, while 2022 sales guidance is normally released in April (our estimates for 2022 sales/Eps + 11%/+24%, which are slightly above the consensus).
