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Investing.com - Swiss-listed shares of Comet shed more than 19% of their value on Thursday, after semiconductor equipment group slashed its full-year guidance and flagged that it will not see a second-half rebound in sales at its key plasma control technology division.
Comet develops and manufactures components and systems like radio frequency-based generators, capacitors and other gear that are mainly used in the chipmaking industry. Its x-ray modules are utilized to inspect manufactured items, such as in the automotive and electronics industries, as well as in luggage and cargo inspection at airports.
In its half-year update, Comet flagged the impact of an "increasingly volatile macroeconomic environment" and geopolitical uncertainty, although it said strong demand for artificial intelligence and high-end computing helped to underpin the semiconductor industry at the end of the first half of 2025.
Still, chip volumes in sectors like autos and consumer electronics continue to "show signs of weakness," Comet warned.
"As a broader market recovery remains pending, a rebound in volumes in plasma control technologies is not expected in the second half of 2025," Comet said, referring to a segment accounted for much of group-wide revenue in the first half. Its other x-ray units were hit by weak-end markets, as consumers ratcheted in spending because of concerns over tariffs, Comet said.
The firm warned that the "short-term outlook is less optimistic than anticipated earlier in the year," but said it will continue to pursue introducing new products and improve efficiency to respond to wider "challenges."
Against this backdrop, Comet lowered its guidance for full-year net sales to between CHF 460 million to CHF 500 million, down from a prior forecast of CHF 480 million to CHF 520 million. Core earnings margin is also seen at 10%-14%, versus 17%-20% previously.
"Hence, using the mid points of its newly introduced guidance suggests significant downside to fsical year 2025 consensus earnings per share estimates," analysts at UBS said in a note.
For its first half, group sales came in at CHF 227 million, implying growth of 20% compared to a year earlier, while reported core income was CHF 21 million. Both metrics fell short of consensus expectations, UBS noted.