Soitec shares slide as Q2 guidance ’materially below consensus’ Investing.com -- Soitec shares are under pressure on Wednesday, currently down more than 6% after the semiconductor materials company issued second-quarter guidance that Bernstein described as "materially below consensus." Soitec (EPA:SOIT) reported first-quarter revenue of €92 million, 1% below consensus expectations. While the year-over-year decline of 16% on a like-for-like basis was slightly better than the company’s forecast of a 20% drop, the results were dragged down by weakness in its Mobile Communications segment. That unit came in 6% below expectations, declining 7% on a like-for-like basis due to “foundry inventory reductions,” Bernstein said. These losses were partly offset by strength in Edge and Cloud, which beat consensus by 6% and grew 13% year-over-year, helped by “very strong Photonics-SOI that more than offset the roll-off of Imager-SOI,” Bernstein noted. However, Soitec’s second-quarter guidance disappointed. The company forecasts a 50% sequential increase in revenue, implying second-quarter revenue of €140 million, down 36% from a year earlier and 19% below consensus. Bernstein attributed the shortfall to “stronger-than-expected foundry de-stocking reflecting macroeconomic/global trade uncertainties (US tariffs),” as well as a weaker smartphone outlook and “continued misery in automotive end-markets.” Bernstein expects the guidance to prompt cuts to full-year expectations: “We expect consensus to cut FY26 revenue expectations by at least €34m (-4.2%)… likely in the -5% to -8% range, implying FY26 EPS cuts of over 10%.” Bernstein had warned in its note (released on Tuesday) that Soitec’s latest update “may result in significant pressure on Soitec shares in tomorrow’s trade (a 10% or worse fall seems in order, in our view).” With SOIT making headlines, savvy investors are asking: Is it truly valued fairly? In a market full of overpriced darlings, identifying true value can be challenging. InvestingPro's advanced AI algorithms have analyzed SOIT alongside thousands of other stocks to uncover hidden gems. These undervalued stocks, potentially including SOIT, could offer substantial returns as the market corrects. In 2024 alone, our AI identified several undervalued stocks that later surged by 30 or more. Is SOIT poised for similar growth? Don't miss the opportunity to find out.

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Meta's stock plunges over 15% after hours as weak Q2 revenue guidance and higher FY 2024 capital expenditures, driven by intensified AI infrastructure investments, unsettle investors. #Meta #StockDrop #Q2Guidance #AIInvestments r/martechnewser