BESI Q2: Strong orders overshadowed by YoY revenue decline
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Investing.com – Shares of BE Semiconductor Industries N.V. (AS:BESI) slumped on Thursday after it reported a decline in its revenue and net income compared to the same period last year.
Despite robust order growth and a sequential revenue increase of 3.3% to €151.2 million driven by photonics and 2.5D assembly applications, Besi reported a 7% dip in year-over-year revenue. Net income for Q2-24 increased by 23.2% compared to Q1 2024 but decreased by 20.3% versus Q2 2023, reflecting challenges in smartphone markets and heightened R&D spending.
Lead times and cyclical headwinds are delaying a rise in sales despite strong orders, said analysts from Citi Research in a note. Besi is managing its cost base well, with gross margins in the mid-60s and operating expenses expected to decrease in Q3, they added.
The AI and advanced packaging segments thrived, with orders experiencing a significant uptick. This positive trend was fueled by the burgeoning AI market, propelling demand for Besi's products.
The company in a statement said it expects its revenue for the third quarter of 2024 to remain relatively unchanged compared to the second quarter, with a possible fluctuation of up to 5% either way.
Citi said key risks for Besi include the pace of technological advancement, competition, customer adoption rates, macroeconomic environment, and potential market crowding, but believes Besi is well-positioned for long-term growth.
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