ELAN Microelectronics (2458) Q3 2024 earnings summary

Executive summary

• 3Q24 consolidated sales were NT$3,403M, down 2.8% year-over-year but up 8% sequentially from 2Q24.

• Net profit for 3Q24 was NT$673M, a 7.4%–12% decrease year-over-year and a 6.3% decline sequentially.

• Nine-month 2024 sales grew 8% year-over-year to NT$9,660M, with net profit up 36%–40.3% to NT$2,133M–NT$2,038M.

• EPS for 1Q24-3Q24 was NT$7.47, up from NT$5.51 in the prior year period.

• Q3 saw a recovery in laptop market demand, boosting revenue, gross margin, and operating profit.

Financial highlights

• 3Q24 gross margin was 49.3%, up from 47.2% in 3Q23 and 48.6% in 2Q24.

• Operating profit margin for 3Q24 was 27.2%, nearly flat year-over-year and up from 24.4% in 2Q24.

• Gross margin for the nine months was 49%, up from 45% year-over-year.

• Operating income for the nine months was NT$2,352M, up 4% year-over-year.

• Cash and cash equivalents at Sep 30, 2024: NT$4,275M, up from NT$2,614M at year-end 2023.

Outlook and guidance

• 4Q24 consolidated revenue expected between NT$2.8B and NT$3.1B.

• Gross margin guidance for 4Q24 is 47.5% to 49.5%; operating margin expected at 20.4% to 25%.

• Management expects continued positive impact from seasonal demand and product line recovery.

• No significant impact anticipated from new accounting standards effective in 2025.