STMicroelectronics (NYSE: STM) plunged over 6.36% in pre trading session on Thursday as it reveals its financial results for the third quarter ended October 1, 2022. ST reported third quarter net revenues of $4.32 billion, gross margin of 47.6%, operating margin of 29.4%, and net income of $1.10 billion or $1.16 diluted earnings per share.
STMicroelectronics President & CEO, Jean-Marc Chery commented that Q3 net revenues of $4.32B and gross margin of 47.6% came in above the mid-point of our business outlook range, driven by continued strong demand for their product portfolio.
The firm reported that Q3 net revenues increased 35.2% on a year-over-year basis, operating margin increased to 29.4% from 18.9%, and net income more than doubled to $1.10 billion. First nine months net revenues increased 27.2% to $11.70 billion, driven by growth in all product groups and sub-groups. Operating margin was 26.9% and net income was $2.71 billion.
The midpoint of ST’s fourth quarter estimate is for net revenues of $4.40 billion, an increase of 1.8% sequentially and 23.7% compared to the same period last year; gross margin is projected to be about 47.3%. In accordance with the strategy we stated in July, the midpoint of our expectation translates into net sales for the entire year 2022 of roughly $16.10 billion, reflecting a 26.2% year-over-year rise and a gross margin of around 47.3%.
STMicroelectronics N.V. announces the repurchase of 252,682 ordinary shares (equal to 0.03% of its issued share capital) on the Euronext Paris regulated market between October 03, 2022 and October 07, 2022 at a weighted average purchase price per share of EUR 33.7456 and an overall price of EUR 8,526,896.92.
With its smart wireless module, the company is assisting in increasing industrial production while reducing waste and pollution. The STM32WB5MMGH6 module, designed for Industry 4.0 applications, enables the usage of ST’s unique wireless microcontrollers in powerful use cases such as I-care Group’s intelligent equipment status monitoring.
The module provides a complete subsystem for wireless communication using popular standards such as Bluetooth Low Energy, Zigbee, and Thread and comes with free-to-use protocol stacks. Alternatively, developers can use other proprietary protocols, if preferred. The module integrates several essential components including the antenna and its matching circuitry, all the passives, and timing crystals. Pre-certifications for EMC, Bluetooth LE 5.3, Zigbee 3.0, and OpenThread simplify the mandatory testing and product-level approval processes for users, which saves development costs and accelerates time to market.
