Melexis NV (MLXSF) Q3 2024 Earnings Call Highlights: Navigating Challenges with Strategic ...

In This Article:

  • Sales: EUR247.9 million, stable year-over-year, 1% increase from Q2 2024.

  • Gross Result: EUR108.2 million, 43.7% of sales, 5% decrease year-over-year.

  • Operating Result: EUR64.2 million, 25.9% of sales, 10% decrease year-over-year.

  • Net Result: EUR51.2 million, EUR1.27 per share, 10% decrease year-over-year, 4% increase from Q2 2024.

  • R&D Expenses: 10.7% of sales.

  • G&A Expenses: 5.1% of sales.

  • Selling Expenses: 1.9% of sales.

  • Q4 2024 Sales Forecast: EUR200 million to EUR210 million.

  • Full Year 2024 Sales Forecast: EUR935 million to EUR945 million.

  • Full Year 2024 Gross Profit Margin Forecast: Above 43%.

  • Full Year 2024 Operating Margin Forecast: Above 24%.

  • Full Year 2024 CapEx Forecast: Around EUR60 million.

Release Date: October 30, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Melexis NV (MLXSF) reported Q3 2024 sales of EUR247.9 million, marking a 1% increase from Q2 2024.

  • The company experienced growth in its magnetic position sensors, pressure sensors, sensor interfaces, and current sensors.

  • Melexis NV (MLXSF) introduced several innovations in Q3, including the expansion of its sensor portfolio and the launch of new products like the Triphibian presenter for electric cars.

  • The company achieved significant design wins in APAC, particularly in China, for automotive motor drivers and HVAC applications.

  • Melexis NV (MLXSF) anticipates a growth trajectory resumption in 2025, with global automotive sales and production forecasted to grow.

Negative Points

  • Melexis NV (MLXSF) is facing an inventory correction with automotive customers in Europe and the US, leading to expected lower sales in Q4 2024.

  • The gross result for Q3 2024 was EUR108.2 million, a decrease of 5% compared to the same quarter last year.

  • The net result decreased by 10% compared to Q3 2023, with a net income of EUR51.2 million.

  • The company expects Q4 2024 sales to be between EUR200 million and EUR210 million, lower than previous expectations.

  • Melexis NV (MLXSF) is experiencing pricing pressures, particularly in China, which could affect margins in 2025.

Q & A Highlights

Q: Could you talk about the inventory correction at your customers and how long you expect it to continue? A: The inventory correction is primarily from our European and US customers, not from China or Asia. We don't have indications that it will continue into 2025, but there is uncertainty. We are currently digesting these corrections.

Q: Can you provide insights into the non-automotive segment's performance and future growth expectations? A: We expect long-term growth of at least 15% in the automotive sector. For non-automotive, we are developing products for robotics, alternative mobility, and digital health. These products will drive future growth.