Latest news with #AdvancedEnergy
Yahoo
14-05-2025
- Business
- Yahoo
AEIS Q1 Earnings Call: Outperformance Driven by Data Center and Semiconductor Strength, Tariff Mitigation Key
Manufacturing equipment and systems provider Advanced Energy (NASDAQ:AEIS) announced better-than-expected revenue in Q1 CY2025, with sales up 23.6% year on year to $404.6 million. The company expects next quarter's revenue to be around $420 million, close to analysts' estimates. Its non-GAAP profit of $1.23 per share was 16.2% above analysts' consensus estimates. Is now the time to buy AEIS? Find out in our full research report (it's free). Revenue: $404.6 million vs analyst estimates of $390.1 million (23.6% year-on-year growth, 3.7% beat) Adjusted EPS: $1.23 vs analyst estimates of $1.06 (16.2% beat) Adjusted EBITDA: $65.4 million vs analyst estimates of $59.31 million (16.2% margin, 10.3% beat) Revenue Guidance for Q2 CY2025 is $420 million at the midpoint, roughly in line with what analysts were expecting Adjusted EPS guidance for Q2 CY2025 is $1.30 at the midpoint, above analyst estimates of $1.11 Operating Margin: 7.6%, up from 0.2% in the same quarter last year Free Cash Flow was $15 million, up from -$9.3 million in the same quarter last year Market Capitalization: $4.52 billion Advanced Energy's latest quarterly results were propelled by strong momentum in the data center computing and semiconductor markets, as management pointed to multiple new design wins and product ramps. CEO Steve Kelley explained that the company shipped over 350 units of its next-generation semiconductor products, a fivefold increase from the prior year, and noted that data center revenues more than doubled year over year due to hyperscale customer demand. Kelley emphasized, 'Our new products, which feature high reliability, high efficiency and high power density, are a good fit for power-hungry AI data centers.' Looking ahead, management expects continued growth in data center and semiconductor segments, while remaining cautious about industrial and medical markets due to lingering inventory corrections and tariff uncertainty. Kelley highlighted that the company's diversified manufacturing footprint and ongoing factory consolidation efforts position Advanced Energy to limit direct tariff exposure. He added, 'Although macro visibility in the second half is limited, current customer forecasts support growth for the year, particularly in data center and semiconductor.' Management attributed the quarter's performance to surging demand in data center and semiconductor markets, effective new product introductions, and operational improvements. The company also detailed steps to address tariff headwinds and invest in future growth. Data center momentum: Data center computing revenue more than doubled versus the prior year, with multiple hyperscale design wins ramping to volume. Management cited strong customer pull for high-density, high-power solutions well-suited for AI workloads. Semiconductor product traction: The company shipped over 350 qualification units of its new semiconductor products (eVoS, eVerest, NavX), with initial production ramps expected in the second half of the year. Kelley said these wins position Advanced Energy for share gains, especially in advanced logic and DRAM. Operational efficiency gains: Gross margin improvement was supported by cost control and progress on factory consolidation, including the pending closure of the last China factory. This is expected to further benefit margins in the second half. Tariff mitigation strategy: While tariffs present new headwinds, management believes their manufacturing footprint in Malaysia, the Philippines, and Mexico, along with USMCA-compliant production, limits exposure. Most direct tariff impact is expected in the industrial and medical segments. Industrial and medical recovery tentative: Industrial and medical revenue declined amid ongoing channel inventory destocking and weaker demand, but late-quarter order rebounds suggest a potential bottom. Management remains cautious, as the pace of recovery may be affected by tariffs and broader economic uncertainty. Management's outlook for the next quarter and full year rests on continued strength in data center and semiconductor demand, the successful ramp of new products, and disciplined cost management to offset tariff pressures. Data center and AI demand: The anticipated growth in AI-driven data center investment is expected to drive further expansion, with new design wins and rapid upgrade cycles increasing product content per system. New product ramp impact: Continued customer adoption and production scaling of next-generation semiconductor products are projected to support above-market growth and margin improvement, especially as qualification transitions to high-volume manufacturing. Tariff and macroeconomic risks: The company acknowledges external risks from tariffs and economic uncertainty, particularly in industrial and medical segments, but believes diversification in manufacturing and proactive supply chain adjustments will mitigate most impacts. Brian Chin (Stifel): Asked how Advanced Energy expects to outperform the broader semiconductor equipment market given flattish wafer fab equipment (WFE) forecasts. Management replied that its 10% growth outlook is driven by new product traction and strength in leading-edge logic and memory segments. Scott Graham (Seaport Research): Questioned plans to improve the industrial and medical business, including whether acquisitions are needed for scale. CEO Steve Kelley indicated ongoing M&A interest and highlighted a record design win pipeline but cautioned that market normalization will take time. Steve Barger (KeyBanc): Pressed for details on high-volume production potential for new semiconductor products. Management stated that ramping to high-volume could more than double shipments and increase dollar content per system, with most growth expected as customers launch advanced nodes. Mark Miller (Benchmark): Asked if margin improvements are sustainable and if new products carry above-average margins. CFO Paul Oldham replied that new products generally have higher margins, and factory consolidation plus increased volume should help approach the company's long-term margin goals. Chris Grenga (Needham & Company): Inquired about the impact of distributor microsites on industrial and medical sales. Kelley noted early success and expects expanded digital distribution to boost design wins and accelerate growth in these segments. For upcoming quarters, the StockStory team will closely watch (1) continued momentum in data center and semiconductor segments, particularly as next-generation products move from qualification to volume production, (2) the pace of recovery in industrial and medical markets as inventory destocking trends stabilize, and (3) the effectiveness of Advanced Energy's tariff mitigation strategies, including manufacturing realignment and supply chain optimization. Progress in these areas will be key to sustaining top-line growth and margin expansion. Advanced Energy currently trades at a forward P/E ratio of 24×. Is the company at an inflection point that warrants a buy or sell? The answer lies in our free research report. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 9 Market-Beating Stocks. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-05-2025
- Business
- Yahoo
What To Expect From nLIGHT's (LASR) Q1 Earnings
Laser company nLIGHT (NASDAQ:LASR) will be reporting results this Thursday afternoon. Here's what to look for. nLIGHT missed analysts' revenue expectations by 3.7% last quarter, reporting revenues of $47.38 million, down 8.7% year on year. It was a slower quarter for the company, with a significant miss of analysts' EBITDA and EPS estimates. Is nLIGHT a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting nLIGHT's revenue to grow 6.3% year on year to $47.34 million, a reversal from the 17.7% decrease it recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.19 per share. nLIGHT Total Revenue Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. nLIGHT has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 1.9% on average. Looking at nLIGHT's peers in the electronic components segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bel Fuse delivered year-on-year revenue growth of 18.9%, beating analysts' expectations by 1.6%, and Advanced Energy reported revenues up 23.6%, topping estimates by 3.7%. Bel Fuse traded up 3.4% following the results while Advanced Energy was also up 11%. Read our full analysis of Bel Fuse's results here and Advanced Energy's results here. There has been positive sentiment among investors in the electronic components segment, with share prices up 10.9% on average over the last month. nLIGHT is up 8.8% during the same time and is heading into earnings with an average analyst price target of $14.33 (compared to the current share price of $7.51). Today's young investors likely haven't read the timeless lessons in Gorilla Game: Picking Winners In High Technology because it was written more than 20 years ago when Microsoft and Apple were first establishing their supremacy. But if we apply the same principles, then enterprise software stocks leveraging their own generative AI capabilities may well be the Gorillas of the future. So, in that spirit, we are excited to present our Special Free Report on a profitable, fast-growing enterprise software stock that is already riding the automation wave and looking to catch the generative AI next.
Yahoo
05-05-2025
- Business
- Yahoo
1 Surging Industrials Stock with Exciting Potential and 2 to Brush Off
Great things are happening to the stocks in this article. They're all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase. But not every company with momentum is a long-term winner, and plenty of investors have lost money betting on short-term fads. Keeping that in mind, here is one stock with lasting competitive advantages and two not so much. One-Month Return: +35.8% Pioneering technologies for radio frequency power delivery, Advanced Energy (NASDAQ:AEIS) provides power supplies, thermal management systems, and measurement and control instruments for various manufacturing processes. Why Do We Think AEIS Will Underperform? Sales tumbled by 8.8% annually over the last two years, showing market trends are working against its favor during this cycle Capital intensity has ramped up over the last five years as its free cash flow margin decreased by 6.6 percentage points Shrinking returns on capital suggest that increasing competition is eating into the company's profitability Advanced Energy is trading at $111.29 per share, or 22.2x forward P/E. If you're considering AEIS for your portfolio, see our FREE research report to learn more. One-Month Return: +42% Established in 1994, Orion (NYSE:ORN) provides construction services for marine infrastructure and industrial projects. Why Are We Out on ORN? Sales trends were unexciting over the last five years as its 2.4% annual growth was below the typical industrials company Performance over the past five years shows its incremental sales were much less profitable, as its earnings per share fell by 10.1% annually Poor free cash flow margin of -0.2% for the last five years limits its freedom to invest in growth initiatives, execute share buybacks, or pay dividends At $7.24 per share, Orion trades at 44.6x forward P/E. Check out our free in-depth research report to learn more about why ORN doesn't pass our bar. One-Month Return: +31% A construction engineering services company, Quanta (NYSE:PWR) provides infrastructure solutions to a variety of sectors, including energy and communications. Why Will PWR Outperform? Sales pipeline is in good shape as its backlog averaged 23.1% growth over the past two years Estimated revenue growth of 10.2% for the next 12 months implies its momentum over the last two years will continue Earnings per share have massively outperformed its peers over the last two years, increasing by 22.4% annually Quanta's stock price of $321.12 implies a valuation ratio of 30.2x forward P/E. Is now the right time to buy? See for yourself in our in-depth research report, it's free. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market 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 175% over the last five years. Stocks that made our list in 2019 include now familiar names such as Nvidia (+2,183% between December 2019 and December 2024) as well as under-the-radar businesses like United Rentals (+322% five-year return). Find your next big winner with StockStory today for free. Sign in to access your portfolio
Yahoo
05-05-2025
- Business
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Vishay Precision Earnings: What To Look For From VPG
Precision measurement and sensing technologies provider Vishay Precision (NYSE:VPG) will be reporting earnings tomorrow before market open. Here's what you need to know. Vishay Precision missed analysts' revenue expectations by 1.3% last quarter, reporting revenues of $72.65 million, down 18.8% year on year. It was a disappointing quarter for the company, with a significant miss of analysts' EBITDA and EPS estimates. Is Vishay Precision a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Vishay Precision's revenue to decline 9.6% year on year to $73.02 million, in line with the 9.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.07 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Vishay Precision has missed Wall Street's revenue estimates five times over the last two years. Looking at Vishay Precision's peers in the electronic components segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bel Fuse delivered year-on-year revenue growth of 18.9%, beating analysts' expectations by 1.6%, and Advanced Energy reported revenues up 23.6%, topping estimates by 3.7%. Bel Fuse traded up 3.4% following the results while Advanced Energy was also up 11%. Read our full analysis of Bel Fuse's results here and Advanced Energy's results here. There has been positive sentiment among investors in the electronic components segment, with share prices up 11.8% on average over the last month. Vishay Precision is up 32.8% during the same time and is heading into earnings with an average analyst price target of $29.25 (compared to the current share price of $27.10). When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we've found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback. Sign in to access your portfolio
Yahoo
05-05-2025
- Business
- Yahoo
Novanta (NOVT) Q1 Earnings Report Preview: What To Look For
Medicine and manufacturing technology provider Novanta (NASDAQ:NOVT) will be announcing earnings results tomorrow before the bell. Here's what to expect. Novanta missed analysts' revenue expectations by 0.9% last quarter, reporting revenues of $238.1 million, up 12.5% year on year. It was a softer quarter for the company, with full-year EBITDA guidance missing analysts' expectations. Is Novanta a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Novanta's revenue to grow 1% year on year to $233.3 million, slowing from the 5.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.67 per share. Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Novanta has missed Wall Street's revenue estimates twice over the last two years. Looking at Novanta's peers in the electronic components segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Bel Fuse delivered year-on-year revenue growth of 18.9%, beating analysts' expectations by 1.6%, and Advanced Energy reported revenues up 23.6%, topping estimates by 3.7%. Bel Fuse traded up 3.4% following the results while Advanced Energy was also up 11%. Read our full analysis of Bel Fuse's results here and Advanced Energy's results here. There has been positive sentiment among investors in the electronic components segment, with share prices up 13% on average over the last month. Novanta is up 16.2% during the same time and is heading into earnings with an average analyst price target of $162.65 (compared to the current share price of $121.98). Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link. Sign in to access your portfolio
