Why Semiconductor Manufacturing International Shares Fell 11% Today
Semiconductor Manufacturing International (NYSE: SMI) reported third-quarter results early Tuesday morning, and investors didn't like the report at all. Share prices fell as much as 11.5% in the morning session, recovering to a 10.7% drop as of 10:50 a.m. EST.
The report itself wasn't bad at all. Analysts had been expecting adjusted earnings of $0.02 per American depositary share, culled from top-line sales of $762 million. The maker of tools and materials used for manufacturing of solar cells and computer chips reported earnings of $0.03 per ADS on $770 million in revenue.
Looking ahead, SMI expects sales growth to slow down in the fourth quarter while gross margins should shrink from 23% to 19%. If everything works out according to management's forecasts, the company might report a modest operating loss in the next reporting period. Analysts are currently expecting a small net profit and significant revenue growth.
Source: Fool.com
