Apple Supplier AMS, Atos Plunge on a Tough Day for European Tech

(Bloomberg) -- Apple Inc. chip supplier AMS AG and Atos SE plummeted after delivering disappointing forecasts, stunning investors and triggering a selloff in some of Europe’s largest technology stocks.

Computer services company Ingenico SA also fell initially after it cited the under-performance of its point-of-sale transactions unit for a cut in full-year profit guidance. The French payments processor has appointed a committee of independent directors to review strategic options for the company. Bloomberg reported in October that Natixis SA was among those exploring a potential combination with the company.

The Stoxx 600 Technology index fell as much as 4 percent after a clutch of disappointing results across the sector. Atos trimmed its revenue forecast, causing its shares to plunge 23.6 percent, the biggest intraday drop in just over a decade. Meanwhile, shares in AMS dived as much as 32 percent after it unveiled a weak margin forecast.

Read More: AMS Margin Calamity Has Short Sellers Celebrating

Ingenico, once one of Europe’s tech darlings, has seen its market value shrink as it struggled to grow globally and shift its business away from hardware terminals and towards growth areas like online payments.

“The adjustment of our 2018 objectives is exclusively related to the disappointing performance of Banks & Acquirers despite its return to growth,” said Philippe Lazare, chairman and chief executive officer. Ingenico shares have fallen by about half since 2015, adding pressure on the CEO and making the company a potential target for acquisitions.

Paris-based Ingenico is one of the few large firms to remain independent in a rapidly consolidating European payments industry. That partly explains the announcement of the strategic review, following preliminary approaches by potential buyers. Its shares fell as much as 4.5 percent in Paris before recouping losses.

Apple Supplier AMS, Atos Plunge on a Tough Day for European Tech

Atos now sees full-year organic revenue growth of around 1 percent versus 2 to 3 percent previously, and is expecting full-year operating margin at the low end of a 10.5 percent to 11 percent bracket. It blamed a disappointing showing from its infrastructure and data management unit in the U.S. and Germany. There’s no broader trend beyond that, Atos’s finance chief, Elie Girard, said on a call with reporters Tuesday.

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