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UPDATE 1-Chipmaker STMicroelectronics beats estimates, lifts 2022 outlook

UPDATE 1-Chipmaker STMicroelectronics beats estimates, lifts 2022 outlook

Reuters · 07/28/2022 01:18
UPDATE 1-Chipmaker STMicroelectronics beats estimates, lifts 2022 outlook

Adds outlook, background

- Franco-Italian chipmaker STMicroelectronics STM reported on Thursday second-quarter revenue that exceeded analysts' expectations, benefiting from strong demand for its chips used in smartphones to cars, and raised its full-year outlook.

STMicro lifted its 2022 revenue forecast to between $15.9 billion and $16.2 billion, from a range of $14.8 billion to $15.3 billion.

It also forecast third-quarter revenue of about $4.24 billion, beating an estimate of $3.81 billion.

Chipmakers such as STMicro have been seeing high demand for their products as the pandemic boosted use of smartphones and computers. But research firm Gartner predicted a growth slowdown later this year and a fall in chip demand year.

STMicroelectronics and GlobalFoundries GFS announced plans this month to build a chip factory in France, with the help of government funding.

The facility, which will be to STM's existing plant in Crolles, would create about 1,000 jobs and help STMicro reach its goal of boosting revenue above $20 billion.

The Geneva-based company's quarterly revenue rose to $3.84 billion from $3.0 billion a year earlier, beating analysts' estimate of $3.69 billion, IBES data from Refinitiv showed.

Its diluted earnings rose to 92 cents a share, beating an estimate of 76 cents a share.


(Reporting by Supantha Mukherjee, European Technology & Telecoms Correspondent, based in Stockholm; Editing by Terje Solsvik and Clarence Fernandez)

((supantha.mukherjee@thomsonreuters.com; +46 70 721 1004; Reuters Messaging: supantha.mukherjee.thomsonreuters.com@reuters.))