Key points:
- IQE shares rallied 8.68% on a positive full-year trading update.
- The chip manufacturer’s prospects seem pretty promising.
- The company’s shares are attractive at current prices.
The IQE plc (LON: IQE) share price rallied 8.68% after releasing an upbeat trading update for the past financial year.
The British semiconductor manufacturer revealed that it had generated revenues according to the guidance issued in November of £164 million.
The company also expects its capital expenditures to be between £14m and £17m, resulting in a net debt position of £6 million at the end of December.
Also Read: Best UK Tech Stocks to Buy Right Now.
Investors’ confidence in the firm could be returning, as evidenced by today’s positive reaction to the annual trading update.
I covered IQE shares in November 2021 when the company made the initial announcement regarding its shrinking margins despite the massive global demand for semiconductor chips compared to its peers that are making a fortune.
At the time, I also mentioned that the chip manufacturer had appointed Americo Lemos as its incoming CEO to lead its next growth phase and the earlier appointment of Critical Manufacturing to create a Manufacturing Execution System (MES).
Investors ignored the announcement, which I thought was a step in the right direction as IQE seeks to revamp its operations.
Many hope that combining a new CEO and the review of IQE’s business operations would lead to better fortunes this year as supply bottlenecks clear up amid the high demand for semiconductor chips.
Meanwhile, investors will be looking forward to the company’s full-year financial results scheduled for 29 March 2022.
Americo Lemos, IQE’s CEO, said: “Having joined the business in January, I am pleased we have delivered revenues in line with our November 2021 trading update. I have been very impressed by the calibre and commitment of the colleagues I have met during my first weeks with IQE, as well as the quality of our world-leading innovation. I am very excited about the potential growth associated with macro technology trends and IQE’s position at the heart of these future products.”
IQE shares appear attractive at current levels after falling 63% in the past year and are currently down 9.99% in 2022.
*This is not investment advice. Always do your due diligence before making investment decisions.
IQE share price.
IQE share price rallied 8.68% to trade at 31.68p, rising from Monday’s closing price of 29.15p.