Shares of VAT Group, the Swiss vacuum-valves manufacturer and supplier, saw a notable increase on Thursday, despite the company’s announcement that it expects second-quarter results to be significantly lower than the previous year.
At 0832 GMT, shares were trading 5.7% higher at CHF372.30.
According to preliminary figures released by the company, second-quarter sales declined by 23% to approximately 221 million Swiss francs ($254.7 million), while its order intake during the same period fell by 56% to CHF155 million.
These declines can be attributed to a sharp decrease in investment activities, particularly in the semiconductor industry. Weaker consumer demand, influenced by uncertainty surrounding interest rates and inflation, has had a significant impact on these investment activities.
However, there is some positive news. VAT Group noted that despite the decline, second-quarter orders have seen a sequential increase of 14%. This suggests that order intake may be starting to recover.
Berenberg analyst Marta Bruska sees this sequential increase as an encouraging sign and believes that a recovery may come sooner than expected by investors.
On the other hand, Baader Helvea analyst Emrah Basic remains cautious. While he acknowledges that the sequential recovery may instill hope in investors, he cautions against reading too much optimism into this at present.
In conclusion, VAT Group’s anticipated decline in second-quarter results is concerning. However, the sequential increase in order intake offers a glimmer of hope for a potential recovery in the near future.
Stay tuned for further updates on VAT Group’s performance.