Aixtron Raises Outlook for 2023 Revenue and Orders

Shares in Aixtron, the German semiconductor-equipment company, saw a significant increase after the company raised its outlook for 2023 revenue and orders. This optimistic update is attributed to the strong demand in the market.

At 0735 GMT, Aixtron's shares were up by 13% at EUR34.87.

Aixtron now expects its order intake for 2023 to range between 620 million euros and 700 million euros ($687.3 million-$776 million), with revenue projected to be between EUR600 million and EUR660 million. The previous forecast was orders of EUR600 million to EUR680 million and revenue of EUR580 million to EUR640 million.

The company has kept its forecast for earnings before interests and taxes margin unchanged, indicating it will remain between 25% and 27%.

In a research note, analysts at Jefferies explained that the improved guidance was mainly due to the approval of export licenses for tools being shipped to China. This was complemented by the strength witnessed in the company's core business.

"The extent of the guidance raise is above our prior expectations, and in our view, it showcases the current strength being observed across the business," stated the Jefferies analysts.

For the second quarter, Aixtron reported a more-than-doubled EBIT of EUR44.6 million, with revenue increasing by 69% to EUR173.5 million.

Aixtron's order intake for the quarter was EUR177.8 million, representing a 17% year-on-year increase. The company revealed that this is its highest quarterly order intake since 2011.