Stryker shares tumble despite strong Q2 results and raised guidance
Investing.com -- SUSS on Tuesday lowered its full-year profit margin guidance despite reporting preliminary second-quarter revenue of €143.2 million, which exceeded Jefferies analyst expectations of €114 million.
The company maintained its full-year revenue forecast of €470-510 million but reduced its gross profit margin guidance to 37-39% from the previous 39-41%. SUSS also cut its EBIT margin outlook to 13-15% from the earlier 15-17% range.
The first half of 2025 saw SUSS achieve a gross margin of 37.2%, with the second quarter dropping to approximately 36.6%.
This performance fell below analyst forecasts of 38.5% due to one-off costs related to UV scanner production in Taiwan and an inventory revaluation connected to a discontinued project.
The company’s operating margin for the second quarter stood at 14.9%, while the first-half EBIT margin reached 15.7%.
SUSS attributed the reduced profitability outlook to additional R&D expenses, less dynamic sales development, changes in product mix, and temporary costs from establishing its Zhubei site in Taiwan.
The unchanged annual revenue guidance suggests a significant 16% half-over-half decline in the second half of 2025, representing a 12% year-over-year drop.
The company faces potential challenges due to its substantial exposure to the HBM and CoWoS segments, where weakness is anticipated to continue into the second half of 2025 and 2026.
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