Why Indie Semiconductor Stock Is Plummeting Today

Indie Semiconductor (NASDAQ: INDI) stock is losing ground Friday following the company's recent earnings report. The tech specialist's share price was down 9.1% as of 11 a.m. ET. Meanwhile, the S&P 500 index was down 0.6%, and the Nasdaq Composite index was down 0.7%.

Indie Semiconductor posted its fourth-quarter results after the market closed yesterday. The company reported sales that missed Wall Street's targets. In addition to a slight sales miss in Q4, the company's forward guidance came in far below expectations.

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Indie stock slips following Q4 report that lacks positive surprises

Indie posted a non-GAAP (adjusted) loss of $0.07 per share on sales of $58.01 million. While the company's loss for the period was in line with the market's expectations, sales fell short of the market's target by approximately $190,000. Revenue was down roughly 17% year over year, and management attributed some of the decline to a challenging industry backdrop. Unfortunately, management's guidance for the first quarter suggests these headwinds will actually intensify in the near term.

What's next for Indie Semiconductor?

For the first quarter, Indie is guiding for sales to come in between $52.5 million and $57.5 million. At the midpoint of the guidance range, this suggests roughly 5% declines on both annual and sequential quarterly bases. Meanwhile, the average analyst estimate had called for sales of roughly $61.3 million in the quarter.

Indie attributed its cautious sales guidance to an uncertain demand outlook and slower-than-expected product ramps in the quarter. However, the company expects its flagship advanced driver assistance systems (ADAS) to see initial shipments in the second half of 2025. While a return to growth may be on the horizon, investors are concerned about the soft guidance for the current quarter.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.