Stmicroelectronics published some preliminary data for the fourth quarter of 2021 this morning before the start of trading (it will communicate the final balance on January 27). In detail, the group announced that unaudited net revenues for the fourth quarter ended December 31 are above the range of corporate guidance provided on October 28, 2021.
Net revenue for the quarter was $ 3.56 billion, up 11.2% quarterly and 140 basis points above the top of the company’s reported range. The estimate was that fourth quarter net revenues were $ 3.40 billion, an increase of 6.3%, plus or minus 350 basis points. The stock market appreciated the data and by mid-morning the stock continues to shine and is currently up by 5.74% to € 45.31.
“We ended the fourth quarter with net revenues above the forecast range and with a gross margin at or slightly above the high end of the estimated range for better-than-expected performance in a dynamic market. ‘Fiscal year 2021 reached 12.76 billion, an increase of 24.9% compared to 2020, reflecting strong performance in all the end markets we target, “said Jean-Marc Chery, president and CEO of STMicroelectronics.
Citi (neutral and target price of 45 euros confirmed) recalls that the company had indicated for the fourth quarter a gross margin of 43%, +/- 200 basis points, thus indicating that it could stand at 45%, beyond the consensus of 42, 9%, and up sharply from 40.5% and 41.6% from second and third quarter 2021 levels. ”
The company will hold a conference call to discuss the financial results for the fourth quarter and full year 2021 and the company outlook on January 27 at 9:30 am.
After the data, Banca Akros raised its judgment from neutral to accumulated, confirming the target price of 46 euros, underlining that the 3.56 billion quarterly revenues are up by 9.9% on an annual basis and that the 12.76 billion for the 2021 are compared with 12.61 billion of the consensus. “We believe that a more favorable environment on the price front and on the product mix front supported the results. The gross margin should reach 45%, a record level for Stm. The data confirm the strong trends in the sector which it is barely satisfying. demand boom. We raise the recommendation to accumulate pending further revisions of the estimates on the occasion of the official communication of the 2021 data “, underlines Banca Akros.
Echoes Equita Sim which confirms the hold judgment with a target price of 44 euros. “In the statement, CEO Chery indicated that the gross margin was
at or slightly above the upper end of the outlook range, implying a record number equal to or slightly above 45%
of the guidance of 43%, plus or minus 200 basis points, compared to our estimate and consensus of 43%. The company will report full 2021 results on January 27, 2022, when it is likely to provide guidance on 2022 capex, while 2022 sales guidance is normally released in April. The stock is currently trading with a 2022-2023 price / earnings ratio of 20-18 times in line with the semiconductor index, Sox, against an all-time premium of 6%. ”
Citi notes that “the strong 11% quarterly revenue growth above the high end of the previously led range (+ 6.3%, +/- 350 points, ed), is indicative of strong short-term demand. term, but perhaps even more important than the company’s ability to do business in the face of current supply bottlenecks. Management has already explained that 2022 is completely overbooked, so 2022 revenue is a function of Stm’s capacity to increase capacity rather than demand. Gross margins of around 45% are also impressive considering the supply challenges. ” (All rights reserved)

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