“European chipmaker STMicroelectronics on Thursday delivered better-than-expected third-quarter sales and earnings, boosted by key customer Apple,” Patrick Seitz reports for Barron’s. “The Franco-Italian company earned 26 cents a share, up 136% year over year, on sales of $2.14 billion, up 19%, in the September quarter. Analysts expected 25 cents and $2.09 billion.”
“The company’s gross profit margin expanded to 39.5% in the third quarter, vs. 38.3% in the second quarter and 35.8% in the year-earlier period,” Seitz reports. “Demand has been ramping for STMicro’s new Time of Flight sensors, which analysts believe Apple is buying as a proximity or motion detector to use in its latest iPhones, Reuters reported. STMicro stock soared by 10.4% to close at 23.07 on the stock market today. It is trading at its highest level in 13 years.”
Seitz reports, “Meanwhile, two other component suppliers likely felt the impact of Apple business in their September-quarter reports: Amphenol and Knowles.”
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MacDailyNews Take: A rising tide lifts all boats.