AMS AG’s shares tumbled by nearly a third on Tuesday after the chipmaker’s outlook failed to convince investors.
“Guidance for the fourth-quarter 2018 is below consensus and our forecast,” Liberum analysts said in a note to clients, adding they were sceptical about AMS meeting its 2019 revenue growth target and operating margin target of 30 percent in 2020.
Shares in AMS dropped by more than 30 percent in early trading and were down 20.5 percent to 30.60 euros at 0814 GMT.
AMS on Monday reported third-quarter earnings above expectations as Apple started mass production of new phones that include its sensors. Apple accounts for around 40 percent of AMS sales, analysts estimate.
Investors in particular are focused on Apple’s three new iPhones, which analysts think include AMS’s face recognition sensors. AMS hopes that new products launched in the second half of 2018 will boost sales next year.
AMS said its third-quarter adjusted earnings before interest and tax (EBIT) reached $60.2 million or 13 percent of revenue from $40.5 million last year thanks to increasing production volumes for a recently launched global smartphone platform. – Reuters