STMicroelectronics Reports Q4 and FY 2019 Financial Results

  • Q4 net revenues $2.75 billion; gross margin 39.3%; operating margin 16.7%; net income $392 million
  • FY net revenues $9.56 billion; gross margin 38.7%; operating margin 12.6%; net income $1,032 million
  • Business outlook at mid-point: Q1 net revenues of $2.36 billion and gross margin of 38.0%

Geneva, January 23, 2020 - 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, 2019. This press release also contains non-U.S. GAAP measures (see Appendix for additional information).

ST reported fourth quarter net revenues of $2.75 billion, gross margin of 39.3%, operating margin of 16.7%, and net income of $392 million or $0.43 diluted earnings per share.

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

  • “We closed 2019 with a solid fourth quarter sales and financial performance. Net revenues grew 7.9% sequentially, above the mid-point of our guidance of 5.0%, with all product groups contributing to the growth. Our gross margin was 39.3%, 110 basis points higher than the mid-point of our guidance, mainly due to better than expected manufacturing efficiencies and improved product mix. On a sequential basis, our operating margin was up 360 basis points to 16.7% and free cash flow increased to $461 million in the fourth quarter.
  • “Our 2019 financial performance, with net revenues of $9.56 billion and an operating margin of 12.6%, is aligned with the full year expectations we provided in April 2019.
  • “ST’s first quarter outlook, at the mid-point, is for net revenues of $2.36 billion, increasing year-over-year by 13.7% and decreasing sequentially by 14.3%; gross margin is expected to be 38.0%, including about 80 basis points of unsaturation charges.
  • “For 2020, we plan to invest about $1.5 billion in CAPEX to support our strategic initiatives and revenue growth to progress towards our mid-term revenue ambition of $12 billion.”

Quarterly Financial Summary (U.S. GAAP)

(US$ m, except per share data) Q4 2019 Q3 2019 Q4 2018 Q/Q Y/Y
Net Revenues $2,754 $2,553 $2,648 7.9% 4.0%
Gross Profit $1,081 $967 $1,059 11.8% 2.0%
Gross Margin 39.3% 37.9% 40.0% 140 bps (70) bps
Operating Income $460 $336 $443 37.1% 3.7%
Operating Margin 16.7% 13.1% 16.8% 360 bps (10) bps
Net Income $392 $302 $418 29.9% (6.2)%
Diluted Earnings Per Share $0.43 $0.34 $0.46 26.5% (6.5)%

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