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Investing.com -- Shares of Nordic Semi (OSE:NOD) fell 10% following the company’s first-quarter earnings report, which showed sales of $155.1 million.
The revenue figure was in line with consensus estimates and toward the upper end of the company’s guidance range of $140-160 million. Despite the solid first-quarter performance, the stock’s decline was driven by the company’s second-quarter revenue outlook, which was slightly below the current consensus.
In the first quarter, Nordic Semi experienced above-normal seasonality with strong demand from large tier 1 customers and signs of broader market recovery. Industrial and Healthcare segments saw a 10% quarter-over-quarter increase in revenue, while Consumer revenues dropped by 8%. The company’s gross margin for the quarter was 49.5%, a modest sequential improvement of 40 basis points.
Looking ahead, Nordic Semi’s guidance for the second quarter of 2025 anticipates revenues between $145 million and $165 million. At the midpoint, this forecast is 4% lower than the current consensus of $162 million. Second-quarter gross margins are expected to be around 50%.
The company highlighted strong design win momentum for its nRF54 product, which is expected to start contributing to revenue from 2026.
However, Jefferies analysts have pointed out that the market is likely to be concerned with the second-quarter revenue guidance miss compared to consensus and the sustainability of first-half strength amid macroeconomic uncertainty and tariffs.
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