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On Monday, Bernstein SocGen Group adjusted its outlook on Lasertec Corp . (TYO:6920:JP) (OTC:LSRCF), reducing the price target from JPY12,100.00 to JPY10,500.00. The firm maintained its Underperform rating on the company’s stock. The revision follows Lasertec’s third-quarter financial results for the fiscal year ending June 2025, which did not meet expectations. The company reported a significant quarterly revenue decline of 57%, falling 28% short of the consensus estimate, with revenue recorded at ¥39.9 billion.
Despite the revenue shortfall, Lasertec’s gross margin slightly exceeded the consensus, coming in at 56.2% compared to the anticipated 54.4%. However, the company’s operating profit margin (OPM) fell below expectations at 39.2%, against the forecasted 41.3%. Production figures showed an increase, with a 5.0% quarter-over-quarter rise to ¥68.5 billion.
The company’s full-year guidance remained unchanged, although the revenue run rate for the third quarter was only at 70.3% of the total expected for the year. According to Bernstein SocGen Group, the usual variability in Lasertec’s profit and loss outcomes should not be overly concerning to stakeholders. More critical to the company’s outlook are the order volumes, which have seen further reductions.
Lasertec has revised its full-year order forecast downward again, now expected to be slightly above ¥140 billion. This represents a 45% year-over-year decrease and a 20% reduction from the previous quarter’s guidance. The shortfall in orders is attributed primarily to weak demand for the company’s ACTIS product, with orders at roughly a quarter of the previous year’s level. This is partly due to reduced capital expenditures from Intel (NASDAQ:INTC) and the lack of adoption of ACTIS for in-line inspection at high-volume manufacturing by TSMC.
Looking ahead, Lasertec anticipates an order recovery beginning in the calendar year 2026, driven by investments in North America, including those by Intel and TSMC. Additionally, there is interest from DRAM customers, although these are expected to be of a smaller magnitude. Management has indicated that orders for the fiscal year 26/6 will surpass those of 25/6, but specific details have not yet been disclosed.
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