“Q3 net revenues of $4.43 billion came in above the midpoint of our business outlook range, and Q3 gross margin of 47.6% was slightly above guidance,” says CEO Jean-Marc Chery (pictured), “Q3 net revenues increased 2.5% year-over-year. As expected, the revenue performance was driven mainly by continued growth in Automotive, partially offset by lower revenues in Personal Electronics.”
“On a year-over-year basis, gross margin remained stable at 47.6%, while, as expected, operating margin decreased to 28.0% from 29.4% and net income was stable at $1.09 billion,” adds Chery, “the first nine months net revenues increased 11.1% year-over-year, driven by growth in ADG and MDG Product Groups, partially offset by a decline of AMS Product Group. Operating margin was 27.6% and net income was $3.14 billion.”
Our fourth quarter business outlook, at the mid-point, is for net revenues of $4.30 billion, declining year-over-year and sequentially by about 3%; gross margin is expected to be about 46%,” says Chery, “the midpoint of this outlook translates into full year 2023 revenues of about $17.3 billion, representing 7.3% year-over-year growth and a gross margin of about 48.1%.”
