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Investing.com -- Soitec shares are under pressure on Wednesday, currently down more than 6% after the semiconductor materials company issued second-quarter guidance that Bernstein described as "materially below consensus."
Soitec (EPA:SOIT) reported first-quarter revenue of €92 million, 1% below consensus expectations.
While the year-over-year decline of 16% on a like-for-like basis was slightly better than the company’s forecast of a 20% drop, the results were dragged down by weakness in its Mobile Communications segment.
That unit came in 6% below expectations, declining 7% on a like-for-like basis due to “foundry inventory reductions,” Bernstein said.
These losses were partly offset by strength in Edge and Cloud, which beat consensus by 6% and grew 13% year-over-year, helped by “very strong Photonics-SOI that more than offset the roll-off of Imager-SOI,” Bernstein noted.
However, Soitec’s second-quarter guidance disappointed. The company forecasts a 50% sequential increase in revenue, implying second-quarter revenue of €140 million, down 36% from a year earlier and 19% below consensus.
Bernstein attributed the shortfall to “stronger-than-expected foundry de-stocking reflecting macroeconomic/global trade uncertainties (US tariffs),” as well as a weaker smartphone outlook and “continued misery in automotive end-markets.”
Bernstein expects the guidance to prompt cuts to full-year expectations: “We expect consensus to cut FY26 revenue expectations by at least €34m (-4.2%)… likely in the -5% to -8% range, implying FY26 EPS cuts of over 10%.”
Bernstein had warned in its note (released on Tuesday) that Soitec’s latest update “may result in significant pressure on Soitec shares in tomorrow’s trade (a 10% or worse fall seems in order, in our view).”