STMicroelectronics NV revenue in the second quarter rose 13% from a year earlier, slightly beating expectations, as demand from the auto industry drove sales.
(Bloomberg) — STMicroelectronics NV revenue in the second quarter rose 13% from a year earlier, slightly beating expectations, as demand from the auto industry drove sales.
The Franco-Italian chipmaker’s revenue rose to $4.33 billion in the period, it said in a statement on its second-quarter results on Thursday. That compares to a $4.29 billion estimate among analysts surveyed by Bloomberg.
Shares were little changed at €46.30 at 9:52 a.m. in Paris.
“Overall we see these results showing the strong earnings momentum shown by the business in the past two years losing steam,” JP Morgan analysts including Sandeep Deshpande wrote in a note.
The results came after Texas Instruments Inc. and NXP Semiconductors NV reported strong results in their automotive divisions as the car industry’s pivot to electric vehicles fuels chip demand. STMicro’s Automotive and Discrete unit, which is its largest, continued to perform well, with revenue up 34% to $1.96 billion last quarter, beating estimates.
“Revenue performance continued to be driven by growth in Automotive and Industrial, partially offset by lower revenues in Personal Electronics,” STMicro Chief Executive Officer Jean-Marc Chery said in the statement.
STMicro narrowed its guidance for full-year revenue to $17.4 billion, plus or minus $150 million. The company’s previous forecast saw sales of between $17 billion and $17.8 billion for the year.
Inventory rose to 126 days at the end of the quarter, an increase from the previous quarter and up from 104 days a year ago.
–With assistance from Henry Ren.
(Update with shares and analyst comment starting in third paragraph.)
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