STMicroelectronics Posts Higher Revenue Amid Strong Automotive Market Demand

   By Mauro Orru 
 

STMicroelectronics reported higher revenue for the third quarter led by growth at its automotive division that offset weak sales at its personal electronics business.

The European chip maker said on Thursday that net revenue climbed 2.5% on year to $4.43 billion, with the company's automotive business contributing $2.03 billion. Sales at its personal electronics business fell 28% to $990 million.

Net profit slipped to $1.09 billion from $1.10 billion. Gross profit--a closely watched metric by analysts and investors--increased to $2.11 billion from $2.06 billion with a gross margin of 47.6%, while operating income fell to $1.24 billion from $1.27 billion with an operating margin of 28%.

STMicroelectronics had expected third-quarter net revenue of $4.38 billion, and a gross margin of roughly 47.5%.

For the fourth quarter, the company is targeting net revenue of $4.30 billion, and a gross margin of 46%.

For the year, STMicroelectronics is forecasting net revenue of about $17.3 billion, and a gross margin of about 48.1%.

Write to Mauro Orru at [e-mail]

(END) Dow Jones Newswires

October 26, 2023 01:37 ET (05:37 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.