STMicroelectronics Shares Rise After Preliminary 4Q Revenue Exceeds Expectations
January 08 2021 - 6:29AM
Dow Jones News
By Mauro Orru
Shares in STMicroelectronics NV rose Friday after the European
chip maker's preliminary revenue for the fourth quarter of 2020
beat its own guidance as well as analysts' forecasts, buoyed by
smartphone demand as well as automotive products and
microcontrollers.
At 1053 GMT, STMicroelectronics shares traded 2.9% higher at
EUR33.35.
The company's preliminary net revenue of $3.24 billion for the
fourth quarter exceeded its own guidance of $2.99 billion, plus or
minus 350 basis points.
"Our engaged customer programs in personal electronics, as well
as continuous acceleration in demand especially of automotive
products and microcontrollers, were the main factors that
contributed to this result," STMicroelectronics Chief Executive
Jean-Marc Chery said.
Bryan Garnier analyst Frederic Yoboue said STMicroelectronics is
reaping the benefits of demand from work-from-home and
learn-from-home devices and strong iPhone shipments.
"We believe the iPhone 12 line-up is on the way to represent an
important upgrade cycle, and we target a 12% increase in iPhone
shipments in 2021," Mr. Yoboue said, adding that Apple Inc. could
represent around 25% of STMicroelectronics' 2021 revenue.
The launch of Galaxy S21 smartphones by Samsung Electronics Co.
should also accelerate growth in the first quarter of 2021 for
STMicroelectronics, Bryan Garnier's Mr. Yoboue added, expecting a
significant increase in content provided for the Galaxy S21 line
up.
Analysts at Swiss bank UBS said the company's preliminary 4Q
revenue figure is 7% above consensus and 9% above UBS
estimates.
"Whilst the Apple upside might be pull-forward or temporary
given the product cycle--we believe the upside in autos and
microcontrollers units are likely to be more sustainable," UBS
analysts said.
STMicroelectronics confirmed it would release 2020 results on
Jan. 28.
Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94
(END) Dow Jones Newswires
January 08, 2021 06:14 ET (11:14 GMT)
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