STMicroelectronics NV’s net revenue in the first quarter rose 20% from a year earlier, as demand from carmakers and industry customers insulated it from a downturn in the broader semiconductor industry.
(Bloomberg) — STMicroelectronics NV’s net revenue in the first quarter rose 20% from a year earlier, as demand from carmakers and industry customers insulated it from a downturn in the broader semiconductor industry.
The Franco-Italian chipmaker’s net revenue rose to $4.25 billion in the period, the company said in a statement Thursday. That compares to an average estimate of $4.21 billion by analysts surveyed by Bloomberg.
“Net revenues of $4.25 billion came in better than expected in Automotive and Industrial partially offset by lower revenues in Personal Electronics,” Chief Executive Officer Jean-Marc Chery said in a statement.
Demand for STMicro products has been driven by customers like Tesla Inc. in its automotive unit, which is the company’s largest business area and has benefited from growing electric vehicle sales. Its industry division is expected to be another key area of growth this year as factories become more connected, STMicro said in January.
STMicro forecast net revenue of $4.28 billion for the second quarter, compared to a $4.24 billion estimate from analysts. The company sees a gross margin of 49% for the period, beating an estimated 47.1% analysts expect.
STMicro increased the lower bound of its net revenue target in 2023, now seen from $17 billion to $17.8 billion. Its previous guidance was for at least $16.8 billion in sales.
The group also produces chips for the personal electronics business, and counts Apple Inc. as a major client. Revenue in this division is expected to fall faster than the market this year due to shrinking orders from one of STMicro’s largest customers, the company said last quarter.
Net revenue from the automotive division grew 44% in the period from previous year, while net revenue from the personal electronics division decreased 0.9%.
Texas Instruments Inc., one of STMicro’s peers and an industry bellwether, gave a disappointing sales forecast for the latest quarter on Tuesday, suggesting the semiconductor industry faces sluggish demand in the short term. However, it said the car industry remains a robust market.
(Updates with details starting in fifth paragraph.)
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