Shares in Chinese chipmaker SMIC drop nearly 7% after earnings miss

A logo hangs on the building of the Beijing branch of Semiconductor Manufacturing International Corporation (SMIC) on December 4, 2020 in Beijing, China. Shares of Semiconductor Manufacturing International Corporation, China's largest contract chip maker, fell nearly 7% Friday after its first-quarter earnings missed estimates. After trading on Thursday, the company reported a first-quarter revenue of $2.24 billion, up about 28% from a year earlier. Meanwhile, profit attributable to shareholders surged 162% year on year to $188 million. However, both figures missed LSEG mean estimates of $2.34 billion in revenue and $225.1 million in net income, as well as the company's own forecasts. During an earnings call Friday, an SMIC representative said the earnings missed original guidance due to "production fluctuations" which sent blended average selling prices falling. This impact is expected to extend into the second quarter, they added. For the current quarter, the chipmaker forecasted ... Read full article.