Nordic Earnings: Investors Remain Watchful for Signs of Revenue Deceleration; Confidence Low

Nordic Semiconductor's third-quarter results were in line with guidance. Sales of $160 million recovered by 24% sequentially, as anticipated. The consumer segment was the main driver of growth, with sales of $108 million and a 35% year-on-year growth. Consumer demand was broad-based, with PC, gaming, and virtual-reality accessories as the highlights. Industrial growth was shyer at 8%, given weaker demand in Europe offset better growth in the US and Asia. Healthcare revenue dipped 21%, but it was coming from strong comparable figures last year. The $130 million to $150 million in revenue outlook also didn't impress investors, who are watchful about how 2025 will develop after management hinted that the year could look softer than expected at the September capital markets day. Comments from other firms under our coverage mirror these fears, as they have mentioned that semiconductor consumer demand remains frail. We are maintaining our NOK 127 fair value estimate.