Melexis Q1 Sales Beat Forecasts, H1 Guidance Maintained

Key Financial Highlights for Q1

Belgian semiconductor manufacturer Melexis NV reported first-quarter sales that slightly exceeded analyst expectations, posting revenue of €202 million. However, earnings per share came in below forecasts, while the company maintained its guidance for the first half of 2026.

Detailed Quarterly Performance

For the first quarter, revenue reached €202 million, surpassing the consensus estimate of €199 million. The gross margin was 39.9%, closely aligned with the 39.7% consensus. The EBIT margin of 16.4% also beat expectations of 16.1%, but earnings per share at €0.57 missed the consensus forecast of €0.62.

Outlook and Market Conditions

Melexis reiterated its guidance for first-half sales to be comparable to the same period in the previous year, with a gross margin targeted around 40%. This implies an expected Q2 revenue of approximately €208 million, which is below the consensus of €211 million. The company noted that the China automotive market has stabilized and is improving, while European demand remains healthy. For the second half of 2026, sales are expected to grow compared to the first half, though visibility for the fourth quarter remains limited. Full-year capital expenditure is projected to be around €40 million.

Summary

Melexis presented a mixed first-quarter report with a sales beat but an earnings miss. The maintained guidance suggests stability, supported by improving conditions in China's auto market. Investors will be watching for sustained growth in the second half of the year as visibility improves.

FAQ

Q: What was Melexis' revenue in the first quarter?
A: Melexis reported Q1 revenue of €202 million, which was ahead of the consensus estimate of €199 million.

Q: Did Melexis adjust its financial guidance?
A: No, the company maintained its guidance for H1 2026 sales to be similar to the previous year's first half, with a gross margin of around 40%.

Q: What did Melexis say about the automotive market?
A: The company indicated that the China automotive market has stabilized and is improving, and demand in Europe remains healthy.

Source: Investing.com