indie Semiconductor Jumps 5% on Q3 Beat


indie Semiconductor, Inc. (INDI) shares jumped almost 5% during the extended trading session on November 10, driven by stronger-than-expected third-quarter results. The automotive semiconductors and software platforms provider also issued Q4 guidance.

The quarterly beat was driven by the positive impact of the ramp-up in automotive solutions, offsetting the effect of ongoing global supply chain constraints.

Impressive Quarterly Figures

Notably, revenues jumped 60% year-over-year to $12.2 million, exceeding consensus estimates of $11.94 billion. Similarly, adjusted gross margin improved 90 basis points sequentially to 43%. (See indie Semiconductorstock chart on TipRanks)

Furthermore, the company reported an adjusted loss of $0.09 per share, two cents ahead of the Street’s estimated loss of $0.11.

indie Raises Q4 Outlook

Based on strong global demand for indie’s Autotech solutions and expected contribution from the TeraXion acquisition, the company provided guidance for the fourth quarter of 2021.

For Q4, the company forecasts revenue to grow 50% sequentially and over 170% year-over-year. Furthermore, management stated that indie is on track to achieve annualized revenue run rate of $75 million, and expects total revenue to more than double in 2021.

Similarly, the company expects adjusted gross margin to grow to 45% in the fourth quarter. Meanwhile, Strategic Backlog is expected to grow to $2.6 billion, against $2 billion witnessed in the prior-year period.

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Management Weighs In

indie CEO, Donald McClymont, commented, “Our advanced technologies are directly answering the market’s demand for higher integration as well as a step function increase in electronic performance to improve safety, accelerate electrification and enhance the user experience.”

He also highlighted, “Further to this end, we are substantially increasing our R&D investments to position indie as the semiconductor and software level solutions provider across all key sensor modalities, towards realizing our vision of creating an Autotech powerhouse.”

Wall Street’s Take

Overall, the consensus among analysts is a Strong Buy based on 3 unanimous Buys. The average indie Semiconductor price target of $18 implies an upside potential of 44% from current levels.

indie Semiconductor scores a 6 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock is likely to perform in line with market expectations. Meanwhile, shares have gained about 24% over the past year.

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