tiprankstipranks
ams OSRAM AG Reports Strong Q3 2024 Performance
Company Announcements

ams OSRAM AG Reports Strong Q3 2024 Performance

ams-OSRAM AG Unsponsored ADR ( (AMSSY) ) has released its Q3 earnings. Here is a breakdown of the information ams-OSRAM AG Unsponsored ADR presented to its investors.

Don't Miss Our Christmas Offers:

ams OSRAM AG is a global leader in sensor and light technologies, operating primarily in the semiconductor industry, with a strong focus on innovation that enhances quality of life while reducing environmental impact. In its latest earnings report, ams OSRAM AG announced solid third-quarter revenues of EUR 881 million, marking an 8% increase quarter-over-quarter, coupled with a significant adjusted EBITDA margin of 18.8%. The company also reported a strong cash position of EUR 1.1 billion and highlighted robust free cash flow supported by customer prepayments and non-recurring engineering revenues.

Key financial metrics revealed an adjusted EBIT of EUR 82 million and a net result of EUR 24 million, showcasing a notable improvement from previous quarters. The company is making significant progress with its ‘Re-establish the Base’ strategic efficiency program, realizing EUR 85 million in savings and increasing its target savings by an additional EUR 75 million to reach a total of EUR 225 million by the end of 2026. This initiative aims to improve profitability amidst market uncertainties, particularly in the automotive sector.

The semiconductor business, which constitutes 73% of total revenues, showed resilience with a flat year-over-year performance, driven by consumer applications that offset weaker automotive and industrial segments. Furthermore, the company reported a significant design-win momentum, adding EUR 1 billion in new business during the third quarter, totaling EUR 3.5 billion year-to-date.

Looking forward, ams OSRAM AG anticipates a fourth-quarter revenue range of EUR 810 million to 910 million and an adjusted EBITDA margin of 15% to 18%, reflecting the seasonal business mix. Despite a predicted weak start in 2025, the company expects growth in its semiconductor core-portfolio for the year, aligning with its updated mid-term operating model targeting a 6% to 10% growth in core semiconductor business by 2027.

Related Articles
TheFlyams OSRAM price target raised to CHF 10 from CHF 1.50 at Barclays
TheFlyams OSRAM price target lowered to CHF 10 from CHF 15 at Deutsche Bank
TheFlyams OSRAM price target raised to CHF 10.20 from CHF 2.50 at JPMorgan
Looking for investment ideas? Subscribe to our Smart Investor newsletter for weekly expert stock picks!
Get real-time notifications on news & analysis, curated for your stock watchlist. Download the TipRanks app today! Get the App