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Investing.com -- Shares of Melexis (EBR:MLXS) NV ( Euronext (EPA:ENX) Brussels: MELE) fell 10% after the company reported fourth-quarter earnings that missed consensus estimates and provided weaker-than-expected guidance for the first half of 2025.
The semiconductor company announced a quarterly revenue of €197 million, which fell short of the anticipated €205 million. Gross margin also came in below expectations at 39.3%, compared to the consensus of 41.4%. The earnings per share (EPS) of €0.45 were significantly lower than the expected €0.74. These results mark a downturn from the same quarter last year, putting pressure on the company’s stock.
Melexis also issued revenue guidance for the first quarter of 2025, projecting between €190 million and €200 million, which is below the consensus estimate of €208 million. Further, the company’s first-half guidance for 2025 suggests sales will be around €400 million with a gross margin of approximately 40% and an operating margin around 16%, all of which are below consensus estimates of €423 million in sales, 41.8% gross margin, and 21.2% operating margin.
For the second half of 2025, Melexis expects sales to grow significantly compared to the first half, although this forecast remains cautious compared to consensus estimates of €464 million in sales for the latter part of the year. The company also anticipates capital expenditures to be around €50 million for the full year.
In response to Melexis’s announcements, analysts at Jefferies commented, "The weak revenue & margin guidance is likely to lead to significant cuts to consensus estimates, in our view, putting near-term pressure on the stock. However, with the inventory correction now fully in progress we expect the stock to soon start pricing in an FY26 recovery.
The market is likely to be sceptical about an H2 improvement, but we believe it would result from normalisation post-inventory correction, even without improvement in car sales."
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