By Pierre Bertrand
Siltronic shares saw a boost on Thursday after the company's third-quarter earnings, although lower than the previous year, exceeded expectations. The German silicon-wafer producer also provided an update on its full-year outlook.
At 0804 GMT, shares traded 4% higher at EUR81.15.
During the period, Siltronic recorded a net profit of 35.1 million euros ($37.1 million), compared to EUR109.9 million in the same period last year. The company's revenue also declined by 26% to EUR349.1 million.
Despite the decline, Siltronic's performance surpassed expectations, particularly due to inventory corrections at semiconductor manufacturers, according to research note from Jefferies analysts Constantin Hesse and Martin Comtesse.
Siltronic anticipates a slight improvement in the fourth quarter. In addition, the company has adjusted its guidance for the full year. It now expects sales to decline between 15% and 17% in comparison to 2022, narrowing the previous range of 14% to 19%. The company also revised its projected earnings before interest, taxes, depreciation, and amortization (EBITDA) margin for 2023. It now expects a margin between 28% and 30%, compared to the previous range of 26% to 30%.
Jefferies analysts noted that these changes in guidance imply minor upgrades to Siltronic's year-end results.