The 5 Most Interesting Analyst Questions From Kulicke and Soffa's Q1 Earnings Call
Is now the time to buy KLIC? Find out in our full research report (it's free).
Revenue: $162 million vs analyst estimates of $165.1 million (5.9% year-on-year decline, 1.9% miss)
Adjusted EPS: -$0.52 vs analyst estimates of $0.19 (significant miss)
Adjusted EBITDA: -$22.37 million vs analyst estimates of $8.85 million (-13.8% margin, significant miss)
Revenue Guidance for Q2 CY2025 is $145 million at the midpoint, below analyst estimates of $188.8 million
Adjusted EPS guidance for Q2 CY2025 is $0.05 at the midpoint, below analyst estimates of $0.35
Operating Margin: -52.3%, up from -61.1% in the same quarter last year
Inventory Days Outstanding: 171, down from 213 in the previous quarter
Market Capitalization: $1.84 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Krish Sankar (TD Cowen) asked about the drivers of the pronounced slowdown in Southeast Asia and whether the weakness was concentrated in general semiconductors or auto/industrial sectors. CEO Fusen Chen explained the majority of the sequential revenue decline was due to automotive uncertainty in Southeast Asia, but noted improved utilization in China and Taiwan.
Tom Diffely (D.A. Davidson) inquired about the revenue run rate and profitability of the discontinued EA business. CFO Lester Wong clarified that EA contributed $25–30 million in annual revenue with modest gross profit and operating expenses, and provided details on expected wind-down costs.
Charles Shi (Needham & Co.) questioned the regional divergence in order activity and the specifics of the company's fluxless thermo-compression bonding (TCB) capacity. Chen emphasized that capacity constraints in fluxless TCB are being addressed and that current growth targets remain intact.
Craig Ellis (B. Riley Securities) asked whether elevated utilization rates could lead to a demand pull-forward, impacting future quarters. Wong replied that customers remain cautious due to tariff uncertainty, and the company does not expect a subsequent drop in utilization rates.
Dave Duley (Steelhead Securities) sought clarification on utilization rates and the company's exposure to future DRAM opportunities. Wong noted utilization in China and Taiwan exceeds 80%, while Chen outlined plans to increase exposure to DRAM and high-bandwidth memory markets in 2026.
In the coming quarters, the StockStory team will closely monitor (1) the pace at which elevated utilization rates in China and Taiwan lead to new capacity purchases as trade policy uncertainty resolves, (2) the progress and customer adoption of recently launched advanced packaging products such as ATPremier MEM Plus and Sonotrode-enabled pin welding systems, and (3) the company's execution on winding down the electronics assembly equipment business and managing associated costs. Additionally, we will watch for signs of renewed order activity in Southeast Asia's automotive and industrial markets as macro conditions evolve.
Kulicke and Soffa currently trades at $37.14, up from $31.74 just before the earnings. In the wake of this quarter, is it a buy or sell? See for yourself in our full research report (it's free).
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
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Intel (INTC) stock rose premarket more than 6% after Softbank Group (9984.T) announced a $2 billion capital injection into the US chipmaker that is currently in the middle of a turnaround effort. Here's a look at some of the top stocks trending in premarket trading: Palo Alto Networks (PANW) shares rose 5% in premarket trading on Tuesday after the Santa Clara cybersecurity firm forecast fiscal 2026 revenue and profit above analysts' estimates, citing growing demand for its AI powered cybersecurity solutions. Digital banking group Nu holdings (NU) stock rose 2% before the bell after Morgan Stanley (MS) analyst Jorge Kuri reiterated a Buy rating on the company and set a price target of $18.00. Intel (INTC) stock rose premarket more than 6% after Softbank Group (9984.T) announced a $2 billion capital injection into the US chipmaker that is currently in the middle of a turnaround effort. Good morning. Here's what's happening today. Economic data: Housing starts (July); Building permits (July) Earnings: Home Depot (HD), XPeng (XPEV), Medtronic (MDT), Amer Sports (AS), Toll Brothers (TOL), La-Z-Boy (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Signs of a healthier path to new records emerge for stocks Nvidia is working on an H20-beating AI chip for China Trump tariffs get S&P seal of approval Why stocks are looking ripe for a regime shift Intel gets a $2 billion lifeline from SoftBank Trump pushes Putin-Zelensky meeting after talks with both Home Depot to report earnings as Wall Street eyes US sales growth Why Google just boosted its stake in a bitcoin miner Economic data: Housing starts (July); Building permits (July) Earnings: Home Depot (HD), XPeng (XPEV), Medtronic (MDT), Amer Sports (AS), Toll Brothers (TOL), La-Z-Boy (LZB) Here are some of the biggest stories you may have missed overnight and early this morning: Signs of a healthier path to new records emerge for stocks Nvidia is working on an H20-beating AI chip for China Trump tariffs get S&P seal of approval Why stocks are looking ripe for a regime shift Intel gets a $2 billion lifeline from SoftBank Trump pushes Putin-Zelensky meeting after talks with both Home Depot to report earnings as Wall Street eyes US sales growth Why Google just boosted its stake in a bitcoin miner Intel gets one new investor... for now With chatter today that the government is nearing taking a 10% stake in Intel, I guess I shouldn't be shocked that the bruised tech giant is hoping to gain some Street cred on its future product roadmap by tapping SoftBank and Masa for cash. Embattled Intel CEO Lip-Bu Tan also gains a Trump friend in Masa. SoftBank will invest $2 billion in Intel at $23 a share. 'Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," SoftBank chair and CEO Masayoshi Son said in a statement. Intel CEO Lip-Bu Tan added, "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.' It's still something to see this unfolding at Intel, which has billions in cash and is by no means in a financial death spiral. Given Masa's close ties to the Trump administration, I suspect the government stake announcement could come next. None of this is a good signal on Intel's turnaround, bottom line. A Trump administration spokesperson didn't return my request for comment. With chatter today that the government is nearing taking a 10% stake in Intel, I guess I shouldn't be shocked that the bruised tech giant is hoping to gain some Street cred on its future product roadmap by tapping SoftBank and Masa for cash. Embattled Intel CEO Lip-Bu Tan also gains a Trump friend in Masa. SoftBank will invest $2 billion in Intel at $23 a share. 'Semiconductors are the foundation of every industry. For more than 50 years, Intel has been a trusted leader in innovation. This strategic investment reflects our belief that advanced semiconductor manufacturing and supply will further expand in the United States, with Intel playing a critical role," SoftBank chair and CEO Masayoshi Son said in a statement. Intel CEO Lip-Bu Tan added, "We are very pleased to deepen our relationship with SoftBank, a company that's at the forefront of so many areas of emerging technology and innovation and shares our commitment to advancing U.S. technology and manufacturing leadership. Masa and I have worked closely together for decades, and I appreciate the confidence he has placed in Intel with this investment.' It's still something to see this unfolding at Intel, which has billions in cash and is by no means in a financial death spiral. Given Masa's close ties to the Trump administration, I suspect the government stake announcement could come next. None of this is a good signal on Intel's turnaround, bottom line. A Trump administration spokesperson didn't return my request for comment. Sign in to access your portfolio
