AMS: stock down 12%; falling sales and margin ahead

(CercleFinance.com) - The AMS shares, of the the Austrian semiconductor group that is listed in Switzerland, is tumbling 12% on the Zurich Stock Exchange today, with the group's growth shrinking and its profitability falling.


In 2018, the group's sales, which is a supplier to Apple, jumped 34% to 1.6 billion dollars, a record level, achieved thanks to 3D and light sensors. However, sales in Q4 alone came in at 491.4 million dollars (+4.5%).

Over the fiscal year, adjusted operating income reached 145.6 million (-24.3%), which resulted in its operating margin falling from 16% to 9%. Adjusted net income collapsed over 90% to 12.1 million dollars.

Due to markets that are less favourable at present, coupled with weak demand for smartphones, AMS only expects Q1 2019 sales of between 350 million and 390 million dollars (against 452.7 million dollars in Q1 2018), along with a low single-digit operating margin.



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