STMicroelectronics Swings To 4Q Profit As Sales, Margins Rise
5:45 PM ET 1/24/11 | Dow Jones
STMicroelectronics NV (STM, STM.MI) swung to a fourth-quarter profit, with adjusted results exceeding analysts' forecasts, as the European chipmaker's sales and margins improved.
The company also forecast current-quarter revenue falling 7% to 12% sequentially, indicating a range of $2.49 billion to $2.63 billion. Analysts surveyed by Thomson Reuters expect $2.56 billion.
"Our fourth-quarter revenues came in near the top end of our range...on broad-based strength in analog, MEMS, microcontrollers and automotive applications," said President and Chief Executive Carlo Bozotti.
STMicro, which supplies chips for the handset, computing, automotive and industrial sectors, has seen strong demand for its chips--led by a resurgence in the automotive industry and a sharp jump in demand for computers--and has cut costs to improve margins.
STMicro reported a fourth-quarter profit of $219 million, or 24 cents a share, from a loss of $70 million, or eight cents a share, a year earlier. Excluding items such as income-tax effects and impairment and restructuring costs, earnings rose to 27 cents from four cents.
Analysts polled by Thomson Reuters had most recently forecast earnings of 24 cents.
Revenue jumped 9.7% to $2.83 billion. The company had forecast $2.71 billion to $2.84 billion.
Gross margin rose to 39.9% from 37%.
Shares fell 1.7% to $11.65 after hours. As of the close, the stock had risen 42% this year. |
