Renishaw PLC (LSE:RSW) shares leapt 10% higher to 3,788p even though it reported a 27% fall in first-half profits.
The engineering group kept its interim dividend unchanged at 16.8p and said it expects an improvement in the second half.
Revenues fell 5% to £330.5 million in the six months to the end of December, reflecting continued weak demand from semiconductor manufacturers, partly offset by growth in industrial metrology.
However, on a constant currency basis, revenue was down 2% compared to a decline of 6% at the first-quarter stage.
Profit before tax (PBT) of £56.5 million compared to £77.8 million a year earlier.
Chief executive William Lee described it as a "solid performance in challenging market conditions" and said the board expects "an improvement in trading performance in the second half of the financial year as market conditions improve".
For the outlook, the company expects full-year revenue to come in at £675-715 million and adjusted PBT at £122-147 million.
Broker Peel Hunt said it views the outlook statement as "encouraging, with a straightforward profit bridge to underpin the through-cycle target of achieving high single-digit average organic revenue growth".