2024 outlook cut, Q4 guidance weigh on AMS Osram shares

Osram Licht AG

02/11/2022 08:37

** Shares in AMS Osram  AMS.VI  fall 6.2% after the Austrian
sensor maker cut its 2024 financial targets, citing current
macro-economic environment with ongoing cost inflation and less
favorable outlook for end markets
    ** The group lowered its FY24 revenue target to EUR 4.7 bln
from EUR 4.9 bln and adj. EBIT margin target to 13% from 15%
    ** "The company continues to see an uncertain environment in
all end-markets, including ongoing inventory adjustments in the
automotive sector," Jefferies says
    ** The broker adds that it expects the business to further
weaken into 2023, before recovering in 2024
        ** The company delivered Q3 sales and underlying
operating profitability in line with expectations but guided for
flat quarter-on-quarter revenue development in the final quarter
  
    ** "The 4Q22 outlook reflects continued challenging markets
and is in-line with VTe but below consensus on profitability,"
Vontobel adds
    ** The stock is at the bottom of Swiss mid-cap index .SMIM 
and headed for its worst day since October
    ($1 = 0.9982 Swiss francs)
 (Reporting by Ozan Ergenay)
 ((ozan.ergenay@thomsonreuters.com))