By Mauro Orru


Shares of STMicroelectronics NV--a key Apple Inc. supplier--jumped in Thursday morning trading after the company posted better-than-expected results for the fourth quarter of 2022 and guided for revenue growth ahead of analysts' forecasts for the current quarter and the full year.

At 0850 GMT, STMicroelectronics shares traded 8.9% higher at EUR42.94.

The European chip maker is targeting net revenue of $4.20 billion at the midpoint for the current quarter. Analysts at Jefferies wrote in a note to investors that the forecast is above consensus of $3.81 billion as well as their own $3.84 billion estimate.

STMicroelectronics is also expecting a first-quarter gross margin of 48.0%, plus or minus 200 basis points, well above consensus and Jefferies's estimate of 45.2%.

For the year, the company targets revenue of $16.8 billion to $17.8 billion, also above consensus of $16.28 billion and Jefferies's $14.96 billion forecast.

"ST's positioning in automotive and with silicon carbide power is providing a strong offset to typical cyclical pressures, leading to its much stronger growth outlook for 2023," Citi analysts said in a note.

STMicroelectronics posted a surge in revenue and profit for the fourth quarter led by growth at its automotive and microcontrollers divisions.

Net revenue climbed to $4.42 billion from $3.56 billion in the fourth quarter of 2021, with the company's automotive business contributing $1.70 billion. Net profit jumped to $1.25 billion from $750 million.

Analysts polled by FactSet had forecast net revenue of $4.41 billion and a net profit of $1.07 billion.


Write to Mauro Orru at; @MauroOrru94


(END) Dow Jones Newswires

January 26, 2023 04:09 ET (09:09 GMT)

Copyright (c) 2023 Dow Jones & Company, Inc.
ST Microelectronics (EU:STM)
Graphique Historique de l'Action
De Mar 2023 à Avr 2023 Plus de graphiques de la Bourse ST Microelectronics
ST Microelectronics (EU:STM)
Graphique Historique de l'Action
De Avr 2022 à Avr 2023 Plus de graphiques de la Bourse ST Microelectronics