UK's Oxford Instruments H1 revenue rises on strong demand for compound semiconductors 

Overview

• UK scientific technology provider's H1 FY27 revenue grew 8.4%, slightly beating the sole analyst estimate

• Adjusted pretax profit for H1 FY27 rose 21.7% yr/yr

• Company reported 44% rise in order intake, supporting outlook for the full year

Outlook

• Oxford Instruments continues to trade in line with market expectations for FY27

• Company expects Advanced Technologies revenue to grow c. 20% in FY28

• Advanced Technologies margin expected to move up into medium target range of 12%-15% in FY28

Result Drivers

• COMMERCIAL DEMAND - Co said strong demand for compound semiconductors and material sciences drove order and revenue growth

• HIGH-VOLUME MANUFACTURING - Advanced Technologies division saw exceptional order growth driven by high-volume manufacturing customers expanding datacentre and communications infrastructure

• REGIONAL SALES MODEL - Co attributed improved order growth to expanded regional sales and service teams, especially in Asia-Pacific and China

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the industrial machinery & equipment peer group is "buy"

• Wall Street's median 12-month price target for Oxford Instruments PLC is GBp3,300.00, about 28.2% above its November 9 closing price of GBp2,574.00

• The stock recently traded at 21 times the next 12-month earnings vs. a P/E of 24 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)