By: Scott Davis
The knock on ST has been growth below close peers like TE Connectivity and… also growth below industrial peers that we cover. In a cyclical upturn, ST was looking very “average”. This quarter marks the first quarter in a couple years where we can say that ST is either at or above peer levels. We don’t know TEL yet but so far industrial co’s have been reporting 5-5.5% core growth rates with ~40 bps of margin expansion and low-mid double digit EPS growth. ST reported 6.4% core growth, 130 bps of margin expansion, and 16% EPS growth. Very respectable. The stock has leaked of late and at $52 looks attractive overall.