Eos Energy stock falls after Fuzzy Panda issues short report
Investing.com -- Nordic Semiconductor delivered a mixed but resilient third quarter, with sales and gross margins exceeding forecasts while profitability lagged due to cost pressures and currency effects.
Shares in the Norwegian chipmaker fell around 5% in early Oslo trading.
Like-for-like (LFL) sales rose 11% year on year to $179 million, about 1% above consensus, supported by a recovery in both the short- and long-range segments.
Short-range sales increased 7% on a like-for-like basis, while long-range sales surged 296% thanks to improving demand from industrial and consumer clients.
Gross margin expanded to 51.9%, up 240 basis points from a year earlier, driven by favorable mix effects and contributions from Memfault.
However, adjusted EBITDA of $18.3 million missed expectations, with margin flat at 10.2%, 290 basis points (bps) below the consensus cited by Kepler Cheuvreux.
Both Morgan Stanley and Kepler Cheuvreux attributed the weaker operating profitability to higher opex linked to acquisitions, currency headwinds, and lower capitalization of R&D.
The company also reported a $13 million negative free cash flow due to working-capital outflows and increased capex from technology purchases, reducing its net cash to $210 million at quarter-end.
For the fourth quarter, Nordic guided revenue between $155 million and $175 million, broadly in line with consensus, and expects gross margin to stay above 50%.
“Nordic Semi delivered a strong top-line in the quarter, showing improvement across the board,” Morgan Stanley analyst Nigel van Putten commented.
Separately, Kepler Cheuvreux analyst Sébastien Sztabowicz called the guidance “rather reassuring” given the macro backdrop, but warned the EBITDA margin could dip to mid-single digits in Q4 due to higher costs.
The brokerage maintained its Buy rating and NOK 185 target, citing that “the business bottomed out in 2024, has entered a cyclical recovery, and the risk-reward remains attractive for mid-term investors.”