STMicroelectronics guides Q4 revenue to $4.15B as Q3 sales rise 17.9%

Q3 sales up 17.9%. STMicroelectronics reported third-quarter net revenue of $3.76 billion, up 17.9% from a year earlier and 7.7% from the second quarter, the company said in its release. That was 150 basis points above the midpoint of its own guidance. Sales to OEMs rose 10.2% and Distribution rose 38.8% from a year earlier, ST said.

Margins and profit. Gross margin was 37.3%, up 410 basis points from a year earlier, according to ST. Net income was $291 million, or $0.31 per diluted share. On a non-GAAP basis, ST reported operating income of $429 million and net income of $344 million, or $0.37 per share.

Q4 outlook. ST guided fourth-quarter revenue to $4.15 billion at the midpoint, plus or minus 350 basis points, up about 10.5% from Q3, and gross margin of about 39%, the release said. CEO Jean-Marc Chery cited AI data centers and LEO satellite communication as company-specific growth drivers. "In an environment where demand remains well above supply, we continue to expand capacity aligned with ST's strategic roadmap," Chery said.

Versus estimates. Reuters said non-GAAP operating income of $429 million beat the $400.5 million expected in an LSEG poll, and compared the Q4 revenue guide with an LSEG estimate of $4.10 billion.

Cash and spending. Operating cash flow was $1.02 billion, ST said. Non-GAAP net capex was $643 million, up from $401 million a year earlier, and free cash flow was $351 million, according to the release.

Sources: STMicroelectronics (GlobeNewswire); Nasdaq; Reuters (via StreetInsider)