In major news on German stocks, Aixtron SE (DE:AIXA) dropped by 18.6% on Thursday as the company’s outlook fell short of expectations in its full-year results for 2023. For 2024, Aixtron expects an operating profit margin ranging between 24% to 26%, falling below analysts’ consensus forecast of 27.1%. That said, the company sustained its growth momentum in 2023 across all major financial metrics.
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AIXA shares gained almost 5% in today’s trading session at the time of writing.
Aixtron is a European manufacturing company that provides equipment and solutions to the semiconductor industry.
Growth Momentum Continues
For the full year, Aixtron’s revenues surged by 36% compared to the previous year, reaching €629.9 million. This growth was primarily fuelled by the strong demand for electronics utilizing gallium nitride (GaN) and silicon carbide (SiC) technologies. These accounted for 74% of equipment revenue in 2023, up from 42% in 2022. In 2024, the company expects its revenue to be between €630 million and €720 million.
Driven by strong revenue growth, Aixtron’s consolidated net profit for the full year grew by 45% year-on-year to €145.2 million. Another highlight for the year was the robust order intake, which again surpassed the previous year, achieving a growth of 9%.
The company also pleased shareholders by declaring a higher dividend of €0.40 per share, marking an increase of 29% from last year.
Aixtron Share Price Target
On TipRanks, AIXA stock has a Moderate Buy rating, backed by a total of seven recommendations, of which three are Buy. The Aixtron share price forecast is €38.20, which implies a growth of 48.6% from the current trading level.
