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STMicroelectronics Reports Q4 and FY 2021 Financial Results

STMicroelectronics Reports Q4 and FY 2021 Financial Results

  • Q4 net revenues $3.56 billion; gross margin 45.2%; operating margin 24.9%; net income $750 million

  • FY net revenues $12.76 billion; gross margin 41.7%; operating margin 19.0%; net income $2.0 billion

  • Business outlook at mid-point: Q1 net revenues of $3.50 billion and gross margin of 45.0%

Geneva, January 27, 2022 - STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, reported U.S. GAAP financial results for the fourth quarter ended December 31, 2021. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported fourth quarter net revenues of $3.56 billion, gross margin of 45.2%, operating margin of 24.9%, and net income of $750 million or $0.82 diluted earnings per share.

Jean-Marc Chery, STMicroelectronics President & CEO, commented:

  • “As we announced on January 7, 2022, our Q421 net revenues and gross margin came in better than expected primarily due to better than anticipated operations in an ongoing dynamic market.

  • “Q421 net revenues were 9.9% higher year-over-year, with a further increase in profitability: operating margin of 24.9% improved from 20.3% and net income was up 28.9%.

  • “Full year 2021 net revenues increased 24.9% to $12.76 billion, reflecting a strong performance across all the end markets we address and our engaged customer programs throughout the year. Operating margin increased to 19.0% from 12.9% in FY20 and net income was up 80.8%.

  • “ST’s first quarter outlook, at the mid-point, is for net revenues of $3.50 billion, increasing year-over-year by 16.1% and decreasing sequentially by 1.6%; gross margin is expected to be about 45.0%.

  • “For 2022, we plan to invest about $3.4 billion to $3.6 billion in CAPEX to further increase our production capacity and to support our strategic initiatives including the first industrialization line of our new 300mm wafer fab in Agrate, Italy.

  • “Based on our strong customer demand and increased capacity, we will drive the Company based on a plan for FY22 revenues in the range of $14.8 billion to $15.3 billion.”

Quarterly Financial Summary (U.S. GAAP)

(US$ m, except per share data)

Q4 2021

Q3 2021

Q4 2020

Q/Q

Y/Y

Net Revenues

$3,556

$3,197

$3,235

11.2%

9.9%

Gross Profit

$1,609

$1,330

$1,254

20.9%

28.3%

Gross Margin

45.2%

41.6%

38.8%

360 bps

640 bps

Operating Income

$885

$605

$657

46.2%

34.8%

Operating Margin

24.9%

18.9%

20.3%

600 bps

460 bps

Net Income

$750

$474

$582

58.1%

28.9%

Diluted Earnings Per Share

$0.82

$0.51

$0.63

60.8%

30.2%

Annual Financial Summary (U.S. GAAP)

(US$ m, except earnings per share data)

FY2021

FY2020

Y/Y

Net Revenues

$12,761

$10,219

24.9%

Gross Profit

$5,326

$3,789

40.6%

Gross Margin

41.7%

37.1%

460 bps

Operating Income

$2,419

$1,323

82.8%

Operating Margin

19.0%

12.9%

610 bps

Net Income

$2,000

$1,106

80.8%

Diluted Earnings Per Share

$2.16

$1.20

80.0%

Fourth Quarter 2021 Summary Review

Net Revenues By Product Group (US$ m)

Q4 2021

Q3 2021

Q4 2020

Q/Q

Y/Y

Automotive and Discrete Group (ADG)

1,226

1,005

953

22.0%

28.6%

Analog, MEMS and Sensors Group (AMS)

1,260

1,268

1,419

-0.6%

-11.2%

Microcontrollers and Digital ICs Group (MDG)

1,062

920

859

15.4%

23.7%

Others

8

4

4

-

-

Total Net Revenues

3,556

3,197

3,235

11.2%

9.9%

Net revenues totaled $3.56 billion, representing a year-over-year increase of 9.9%. On a year-over-year basis, the Company recorded higher net sales in all product groups except the Imaging sub-group, as expected. Year-over-year net sales to OEMs were substantially unchanged in total while Distribution increased 38.7%. On a sequential basis, net revenues increased 11.2%, 140 basis points above the high-end of the Company’s guidance. ADG and MDG reported increases in net revenues on a sequential basis, with AMS essentially flat.