Dialog Semiconductor: stock collapses after warning issued
(CercleFinance.com) - Dialog Semiconductor shares are in a spin today, plummeting about 15%, the day after the chip maker issued a sales warning because of lower volumes ordered by Apple this year.
Apple will indeed source energy savings chips for its smartphones with an additional supplier, which should reduce the German group's estimated revenues by approximately 5% in 2018.
This scenario of a double-supply was not expected so soon, says broker Bryan Garnier, which as a result has reduced its EPS estimates and target price from 27 euros to 26 euros, albeit maintaining its "neutral" rating on the share.
Copyright (c) 2018 CercleFinance.com. All rights reserved.