Indie Semiconductor’s shares took a hit following disappointing fourth-quarter sales and first-quarter revenue projections that fell short of analyst forecasts.
Decline in Stock Price
The company’s stock plummeted by 16% in premarket trading, reaching $5.80, after already experiencing a 15% year-to-date decrease by the close of Friday’s market session.
Fourth Quarter Results
Despite an impressive $70.1 million in revenue for the fourth quarter, marking a significant increase from the previous year, Indie Semiconductor failed to meet analyst expectations of $72.6 million.
Lowered First Quarter Expectations
Indie Semiconductor anticipates a 20% sequential decrease in sales for the first quarter, projecting revenues of around $56.1 million. This projection contrasts sharply with the $76.2 million forecasted by analysts polled by FactSet.
Reasoning Behind Weak Outlook
Chief Financial Officer Thomas Schiller attributed the company’s underwhelming revenue forecast to “market seasonality and current industry softness.”
Vision for the Future
Looking ahead, Schiller expressed optimism, stating that the first quarter is expected to be a trough period with anticipated top-line recovery in the second quarter. He also predicted a resurgence of robust sequential growth in the third and fourth quarters.