Suss Microtec Shares Soar After Forecast-Beating Results

Suss Microtec (SMHN) shares have soared in early European trading on Friday, following the semiconductor group's announcement of better-than-expected full-year sales and margins. The company's stock price jumped by 35 percent shortly after the start of trading, with investors relieved by the positive key figures. The paper is now trading around 50 euros, a significant increase from its recent lows.

The Garching, Germany-based company reported preliminary and unaudited figures for the fourth quarter of 2024, with sales coming in at 150 million euros and order intake at 147 million euros. These figures pushed up the annual top-line result to 445 million euros, significantly exceeding the projected range of 380 million euros to 410 million euros. The strong order intake was driven by both the advanced backend segment, which accounted for 102 million euros, and the Photomask division, which contributed 45 million euros.

Suss Microtec's gross profit margin is now expected to reach around 40 percent, touching the upper end of the previously published outlook of 38 percent to 40 percent. The earnings before interest and taxes (EBIT) margin is also tipped to be around 17.5 percent, exceeding the estimate of 14 percent to 16 percent.

Analysts have been quick to weigh in on the positive news. Tim Wunderlich of Hauck Aufhäuser Investment Banking commented that even more good news from the semiconductor company is on the horizon in 2025. Warburg Research also noted that the strong order intake ensures a good predictability of the revenue development in the current year.



Suss Microtec's strong performance in 2024 can be attributed to several key factors, including high demand for semiconductor equipment, a strong order intake, improved order situation in coating systems, and capacity expansion at key customers. The company's strategic focus on high-growth markets and its ability to maintain strong customer relationships have also contributed to its success.

As the semiconductor industry continues to grow, investors should keep a close eye on Suss Microtec's performance. The company's ability to consistently beat forecasts and maintain a strong order book bodes well for its future prospects. With a solid foundation for the 2025 financial year, Suss Microtec is well-positioned to capitalize on the increasing demand for semiconductor equipment and process solutions.