Memscap, a manufacturer of high-precision sensors, reported above-expectation results for the first quarter on Thursday, boosted in particular by the dynamism of its aerospace business.
The Grenoble-based group's share price rose by 10% following this publication, bringing its year-to-date increase to over 130%.
Its consolidated sales from continuing operations came to 3.7 million euros in the first three months of the year, compared with 2.3 million a year earlier, an increase of 60.8%.
Its quarterly EBITDA came to 741,000 euros, compared with 266,000 euros in Q1 2022, for an operating profit of 505 thousand euros, compared with a profit of 31.000 euros a year earlier.
In a reaction note, Euroland analysts refer to "spectacular" growth and figures well above their expectations.
The brokerage firm, which reiterates its buy recommendation on the stock, indicates that it has raised its target price on the stock from 4.15 to 5.10 euros.
Despite the sharp rise in its share price, Euroland says it considers current levels to be an attractive entry point in view of the company's growth and profitability prospects.
Memscap manufactures high-precision, high-stability pressure sensors for the aerospace and medical sectors, as well as variable attenuators (VOA) for optical communications.
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Memscap is the leader in designing, manufacturing and marketing components, modules, systems and solutions based on micro electro-mechanical systems (MEMS). MEMS combine semiconductor micro-electronics with micro-manufacturing technology to make entire systems contained on one chip. Net sales (excluding sold businesses) break down by area of activity as follows:
- avionics and medical (88%): design and manufacture of multifunctional sensors and measurement systems for aeronautics and medical sectors;
- optical communications (11.1%): design and marketing of variable optical attenuators (VOAs) for the communications market, based on a fabless organization;
- dermocosmetics (0.9%): operation and management of the Group's assets in the dermatology and cosmetology sectors, primarily the Ioma brand.
Net sales are distributed geographically as follows: Europe (52.9%), the United States (38.5%), Asia (7.8%) and other (0.8%).