Apple Supplier AMS Drops as Net Misses Estimates: Zurich Mover
AMS shares fell as much as 7.3 percent, the biggest intraday decline since Nov. 1, 2011. The stock more than doubled last year. The shares were trading 3.2 percent lower at 112.5 francs as of 2:24 p.m. in Zurich, giving the company a market capitalization of 1.6 billion Swiss francs ($1.7 billion).
The company gets about a quarter of sales from Apple. Net income of 81.9 million euros ($110 million) missed the 84- million euro average estimate of analysts in a Bloomberg survey. Selling, general and administrative expenses rose 25 percent to 65 million euros.
Profit missed expectations mainly due to higher-than- expected operational expenditures such as selling and administrative costs, Reto Amstalden, an analyst at Helvea Securities in Zurich, wrote in a note to clients.
Sales rose 41 percent to 387.6 million euros, beating the company’s guidance for revenue growth, Chief Executive Officer John Heugle said at a press conference in Zurich.
“We hit our guidance, if fact we were slightly over in some parts,” Heugle said in an interview.
More than 225,000 shares of the Unterpremstaetten, Austria- based company exchanged hands, about three times the daily trading average for the last six months.
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