Shares of STMicroelectronics were gaining in Paris trading as well as in the pre-market activity on the NYSE, after the semiconductor manufacturer reported Thursday higher profit and revenues for its fourth quarter that beat analysts’ estimates. <\/p>\n
Separately, the company announced that its President and Chief Executive Officer Jean-Marc Chery has accepted Supervisory board’s proposal to be available for re-appointment in his current roles for further three years. The Supervisory Board will propose the re-appointment for shareholder approval at the next Annual General Meeting of Shareholders. <\/p>\n
Looking ahead for the first quarter of 2021, at the mid-point, the company expects net revenues to be $2.93 billion, a decrease of 9.5 percent sequentially, plus or minus 350 basis points. Analysts expect revenues of $2.59 billion for the first-quarter. Gross margin is expected to be about 38.5 percent, plus or minus 200 basis points.<\/p>\n
For 2021, the company plans to invest about $1.8 billion to $2.0 billion in CAPEX to support the strong market demand and strategic initiatives.<\/p>\n
For the fourth quarter, net income attributable to parent company increased to $582 million or $0.63 per share from $392 million or $0.43 per share in the year-ago quarter. Analysts polled by Thomson Reuters expected the company to report earnings of $0.56 per share for the fourth-quarter. Analysts’ estimates typically exclude special items. <\/p>\n
Net revenues were $3.24 billion, representing a year-over-year increase of 17.5 percent from $2.75 billion. Analysts expected revenues of $3.14 billion for the fourth-quarter.<\/p>\n
Sequentially, net profit surged 140 percent and net revenues grew 21.3 percent from the preceding third quarter.<\/p>\n
On a year-over-year basis, the company recorded higher net sales in all product groups except the RF Communications sub-group.<\/p>\n
In Paris, STMicroelectronics shares were trading at 33.48 euros, up 5.55 percent. In pre-market activity on the NYSE, the shares were gaining 7 percent at $40.55. <\/p>\n