IQE dispels fears it will not meet guidance

IQE, a supplier of semiconductor wafer products and services, attempted to dispel fears that it will not meet earnings expectations for the second half, as it announced hitting key technology transfer milestones with solar cell manufacturer Solar Junction.

IQE, a supplier of semiconductor wafer products and services, attempted to dispel fears that it will not meet earnings expectations for the second half, as it announced hitting key technology transfer milestones with solar cell manufacturer Solar Junction.

Fears that its second-half results might be impacted by a slowdown in sales from its wireless division, followed a 'sell' note by Investec on November 28th. However, IQE Chief Executive Drew Nelson commented: "As we approach the end of our financial year, we are also confident that we will meet our earnings expectations."

The comments came as IQE announced it had completed several key technology transfer milestones with Solar Junction.

Commercial production of a '3Junction' wafer is expected to begin in the first half of 2013, initially with customer product qualification quantities, moving to volume production in the second half.

Broker Cenkos commented: "At the September interims IQE said it expected a 'very strong increase' in revenues and profits in the second half, and nothing has really changed in Wireless to derail that in our view - thanks partly to inventory restocking.

That being the case, we see the recent pullback as a buying opportunity, backed by a valuation which sits at seven times estimated 2013 EV/EBITDA [enterprise value/earnings before interest, tax, depreciation and amortisation] and a PEG [price earnings growth] ratio of 0.3 times averaged over estimates for 2013 and 2014."

CM

Recommended

The top funds to invest in
Funds

The top funds to invest in

As market volatility and recessionary fears continue, here are the most popular funds, stocks and trusts investors are putting their money into accord…
2 Feb 2023
The ten highest dividend yields in the FTSE 100
Income investing

The ten highest dividend yields in the FTSE 100

Rupert Hargreaves takes a look at the companies with the highest dividend yields in the UK’s blue-chip index
23 Jan 2023
The top ten dividend stocks in the FTSE 250
Share tips

The top ten dividend stocks in the FTSE 250

The average FTSE 250 dividend yield is around 4%, but many stocks yield much more. Rupert Hargreaves picks the best FTSE 250 stocks for income investo…
17 Jan 2023
Investing trends to watch out for in 2023: what analysts say
Investment strategy

Investing trends to watch out for in 2023: what analysts say

What are sensible strategies for high inflationary times? We ask analysts to find out.
22 Dec 2022

Most Popular

Best savings accounts – February 2023
Savings

Best savings accounts – February 2023

Interest rates on cash savings are making a comeback. We look at the best savings accounts on the market now
3 Feb 2023
The best one-year fixed savings accounts - February 2023
Savings

The best one-year fixed savings accounts - February 2023

Earn almost 5% on one-year fixed savings accounts.
3 Feb 2023
After slumping 42% last year, what's next for Scottish Mortgage?
Investment trusts

After slumping 42% last year, what's next for Scottish Mortgage?

After a spectacular couple of decades, the Scottish Mortgage Investment Trust fell by 42% last year. We take a look at the trust's performance and dis…
3 Feb 2023