Memscap: slower-than-expected first half, share price declines

(CercleFinance.com) - Memscap shares, a manufacturer of pressure sensors for the aerospace and medical sectors, fell sharply on the Paris Bourse on Monday, following a first-half performance that analysts deemed less dynamic than expected.


Already published, consolidated sales from continuing operations for the first half of the year came in at nearly 7.3 million euros, up 3% on the first half of 2023.

Operating profit from continuing operations came in at 899,000 euros, down from 1.15 million euros a year earlier, due to higher costs associated with commercial and technical programs.

Net profit for the first half came to 992,000 euros, compared with a net profit of 1.13 million euros for the first six months of 2023.

In a reaction note, Euroland analysts report half-year results "in line" with expectations, while expressing some reservations about the company's performance.

"Although the first half was less buoyant than hoped, the strategy deployed by the Group enabled it to clearly offset the decline in medical sales", emphasizes the brokerage firm.

The Group's leading market, the avionics sector, posted sales of almost 4.9 million euros, an increase of over 8% compared with the first half of 2023.

Sales in the medical sector, on the other hand, fell by 3% to 1.66 million.

After this first half, we understand that the excellent momentum observed in the Group's growth drivers (aeronautics) should make it possible to limit the decline in the medical sector, and confirms the solidity of the model", emphasizes Euroland, which is maintaining its Buy recommendation on the share, accompanied by a price target of 10.5 euros.

Under the effect of its buoyant markets with "high visibility", Memscap confirmed its trajectory to 2026, based on an average annual hyper-growth rate of 20%.

Investors seemed cautious after this publication, however, with the Memscap share listed on the Paris Bourse losing around 4% in early trading on Monday.

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