AMS AG (AMSSY) shares advanced after the Austrian chipmaker said it expects revenue and profitability to expand at a fast pace over the next few years.
Shares in the Premstatten, Austria-based company advanced 14% to Sfr38.75 at 8:30 GMT. The stock has jumped 25% over the past three months.
The supplier to Apple (AAPL) and other consumer electronics and automotive products makers said Tuesday it expects revenue to expand at a compound annual growth rate of 30% for the next three years, and for EBIT margin to jump to 30% from 2019 onward. In the most recent quarter, EBIT margin stood at 12%.
The chipmaker said it expects revenue growth to come from both existing businesses as well as the newly acquired optical packaging business Heptagon, adding that it expects substantial growth from the latter to start from mid-2017.
For the fiscal fourth quarter through December, AMS reported net profit of €13.7 million ($14.6 million) on revenue of €133.6 million. That is down 55% and 9% respectively from the same period a year earlier.
AMS makes analog semiconductors used in sensors for consumer electronics as well as automotive, industrial and medical products. The capacity of the sensors ranges from optical to audio to 3D.
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