By Ozan Ergenay
(Reuters) -German semiconductor materials supplier Siltronic reported forecast-beating third-quarter results and raised its core profit margin for 2024 on Thursday, due to delayed customer qualifications in Singapore.
The company, which makes silicon wafers used in semiconductor chips, posted revenue of 357.3 million euros ($385.6 million) for the quarter, compared with 349.1 million euros a year earlier. That was ahead of analysts’ average estimate of 342.5 million euros according to LSEG data.
Siltronic now expects earnings before interest tax, depreciation and amortisation (EBITDA) margin to be in a range of 24% to 26% for the year, compared to 23%-25% previously targeted.
Its EBITDA fell 9.8% to 89.4 million euros for the third-quarter, but ahead of analysts’ forecast of 78.5 million euros in a poll by LSEG.
“Waiting for the upturn requires patience, but we see the risk/reward of the shares positively as the downturn is well advanced and the upturn should materialise at some point during
2025,” analyst Juergen Wagner at Stifel Europe said in a note.
Shares in the company were up 6.1% in early trading, tracking for their best day since July.
Chip stocks have been under pressure after the U.S. government’s tighter restrictions on exports of chip equipment to China and uncertainty over the U.S. presidential election made investors cautious. Weak demand for automotive, PC and memory chips has been partially offset by increased demand for AI chips.
“In a persistently challenging market environment, we have delivered solid quarterly results. However, it remains uncertain when chip manufacturers’ inventories will return to normal levels,” CEO Michael Heckmeier said in a statement.
Siltronic confirmed its full-year guidance, expecting sales to be in the high single-digit percentage range below the previous year.
($1 = 0.9266 euros)
(Reporting by Ozan Ergenay in Gdansk; Editing by Matt Scuffham)
