Gemalto crashes after slashing 2017 sales guidance

Gemalto stock crashed after the company lowered it sales guidance for 2017.

The world´s largest manufacturer of SIM cards said that at constant exchange rates first quarter sales would fall between 7% and 9% versus year-ago levels.

Full-year revenues were expected to decline by roughly €100.0m than initially projected, reflecting a double-digit decrease in the payments cards total available market in the US because of EMV card inventory levels at its customers in the first semester.

As a result, full-year 2017 operating profits were now seen at a similar level as in 2016.

"Gemalto is currently reviewing its action plan to minimize the impact," the company said in a statement.

As of 1107 GMT shares in the €4.6bn market cap IT services company were down 16.87% to €52.54 in Amsterdam trading, for a 4.33% drop year-to-date.