STMicroelectronics N.V. (STM) CEO Jean-Marc Chery on Q2 2022 Results - Earnings Call Transcript

STMicroelectronics N.V. (NYSE:STM) Q2 2022 Earnings Conference Call July 28, 2022 3:30 AM ET

Company Participants

Celine Berthier - Group Vice President, Investor Relations

Jean-Marc Chery - President & Chief Executive Officer

Lorenzo Grandi - Chief Financial Officer, President, Finance, Purchasing, Enterprise Risk Management & Resilience

Conference Call Participants

Alexander Peterc - Société Générale

Adithya Metuku - Credit Suisse Group AG

Tony Stoss - Craig-Hallum Capital Group LLC

Sandeep Deshpande - JPMorgan Chase & Co.

Sébastien Stabowitz - Kepler Cheuvreux

Gianmarco Bonacina - Equita Group

Andrew Gardiner - Citigroup Inc.

Didier Scemama - Bank of America

Operator

Ladies and gentlemen, welcome to the STMicroelectronics Q2 2022 Earnings Results Conference Call and Live Webcast. I’m Myra, the Chorus Call operator. I’d like to remind you that all participants will be in listen-only mode, and the conference has been recorded. The presentation will be followed by Q&A session. [Operator Instructions] The conference must not be recorded for publication or broadcast.

At this time, it’s my pleasure to hand over to Celine Berthier, Group Vice President, Head of Investor Relations. Please go ahead, madam.

Celine Berthier

Thank you, Myra. Good morning. Thank you everyone for joining our second quarter 2022 financial results conference call. Hosting the call today is Jean-Marc Chery, ST’s President and Chief Executive Officer. Joining Jean-Marc on the call today are Lorenzo Grandi, our President and Chief Financial Officer; and Marco Cassis, President of Analog, MEMS and Sensors Group and in his global corporate role, Head of Strategy, System Research and Applications and Innovation Office. This live webcast and presentation materials can be accessed on ST’s Investor Relations website.

A replay will be available shortly after the conclusion of this call. This call will include forward-looking statements that involve risk factors that could cause ST’s results to differ materially from management’s expectations and plans. We encourage you to review the safe harbor statement contained in the press release that was issued with the result this morning and also in ST’s most recent regulatory filings for a full description of these risk factors. Also to ensure all participants have an opportunity to ask questions during the Q&A session, please limit yourself to one question and a brief follow-up.

And I’d now like to turn the call over to Jean-Marc, ST’s President and CEO.

Jean-Marc Chery

Thank you, Celine. Good morning, everyone, and thank you for joining ST for our Q2 2022 earnings conference call. Let me begin with some opening comments starting with Q2. So Q2 net revenues of $3.84 billion and gross margin of 47.4% came in above the midpoint of our business outlook range driven by continued strong demand for our product portfolio. The year-over-year net revenue was grew 28.3%. This revenue growth was accompanied by improved profitability; gross margin at 47.4%, up from 40.5%; operating margin at 26.2%, up from 16.3%; and net income more than doubled to $867 million.