Shares in Apple supplier AMS jumped by around 20% on Monday after the Switzerland-based company reported strong fourth-quarter revenues and raised its guidance.
The provider of high performance sensor solutions reported a 252% jump in fourth-quarter revenues, citing strong growth in consumer related sales in the 3D sensing and advanced light sensing segments.
iPhone X boost
Much of the strong upswing in AMS revenues coincides with the launch of Apple´s new iPhone X.
Referring to “increases in revenue pipeline visibility”, AMS said it now expected revenue growth of 60% for 2016-2019, combined with an adjusted EBIT margin target of 30% from 2019 onwards.
“The substantial upward change, which translates into 2019 expected revenues of more than €2.2bn, is particularly driven by a range of revenue pipeline opportunities in smartphone and consumer applications that are clearly coming into view. Resulting from structural growth in sensing, this includes programs in 3D, optical and spectral sensing, among others, as well as attractive growth contributions from AMS’ automotive, industrial and medical business,” said AMS in a statement on Monday.
AMS´ reference to increased visibility comes in sharp contrast to Apple supplier Dialog Semiconductor, which said its 2018 outlook was uncertain amid speculation that Apple was considering bringing some chip production in-house.
However, the upbeat tone from AMS was generally positive for the shares of other Apple suppliers on Monday, including Dialog´s stock, which rallied 3% following AMS´s results update.