Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com - Deutsche Bank (ETR:DBKGn) downgraded SUSS MicroTec SE (ETR:SMHN) from Buy to Hold on Tuesday, while reducing its price target to EUR41.00 from EUR52.00.
The downgrade follows SUSS MicroTec’s profit warning issued Monday evening, in which the company cut its gross margin guidance to 37-39% from the previous 39-41% range and lowered its EBIT margin expectations to 13-15% from 15-17%.
Despite the margin concerns, SUSS MicroTec maintained its sales guidance of EUR470-510 million and reported preliminary second-quarter sales of approximately EUR143 million, which Deutsche Bank noted was 18% above its estimate of EUR121 million.
The company’s second-quarter gross margin fell to an estimated 36.5%, down from 37.9% in the first quarter, while its EBIT margin declined to 14.9% from 16.5% in the previous quarter.
Deutsche Bank identified two non-recurring factors affecting gross profit: start-up costs for production of the UV projection scanner in Taiwan and inventory writedowns related to a discontinued project, which the company confirmed was neither related to hybrid bonding nor wafer cleaning.
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