STMicroelectronics 4Q Net Profit Beat Estimates; Issues 1Q Outlook

   By Mauro Orru 
 

STMicroelectronics NV on Thursday posted net profit for the fourth quarter of 2020 ahead of analysts' expectations and issued guidance for the first quarter of 2021.

The European chip maker said fourth-quarter net profit climbed to $582 million from $392 million in the fourth quarter of 2019, above estimates of $547.2 million, according to FactSet.

The company confirmed revenue for the period climbed to $3.24 billion from $2.75 billion.

STMicroelectronics said in early January that preliminary net revenue of $3.24 billion exceeded its own guidance of $2.99 billion, plus or minus 350 basis points, thanks to demand for smartphone components as well as automotive products and microcontrollers.

Gross profit for the quarter rose to $1.25 billion from $1.08 billion with a gross margin of 38.8%, while operating income increased to $657 million from $460 million with an operating margin of 20.3%.

STMicroelectronics said it expects net revenue for the first quarter of 2021 of $2.93 billion at the mid-point, with gross margin at about 38.5%.

"For 2021, we plan to invest about $1.8 billion to $2 billion in Capex to support the strong market demand and our strategic initiatives," Chief Executive Jean-Marc Chery said.

Write to Mauro Orru at [e-mail]; @MauroOrru94

(END) Dow Jones Newswires

January 28, 2021 01:30 ET (06:30 GMT)

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