Latest news with #AdvancedEnergyIndustriesInc
Yahoo
01-05-2025
- Business
- Yahoo
Advanced Energy Industries Inc (AEIS) Q1 2025 Earnings Call Highlights: Strong Revenue Growth ...
Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Advanced Energy Industries Inc (NASDAQ:AEIS) reported a 24% year-over-year increase in revenue, driven by strong performance in data center computing and semiconductor sectors. The company achieved a gross margin of 37.9%, which was better than expected due to improvements in operational efficiency and favorable product mix. AEIS is experiencing strong demand for its new products, with significant traction in the semiconductor market, particularly for its Evos, Everest, and Navex products. The company has a diversified manufacturing footprint, which helps mitigate the impact of tariffs and optimize production to meet customer needs. AEIS has a strong balance sheet, enabling it to pursue strategic acquisitions and invest in capacity and capability for growth. Industrial and medical revenue declined by 16% sequentially and 23% year-over-year, primarily due to ongoing inventory destocking and weaker demand. The company faces macroeconomic uncertainty and potential impacts from new tariffs, which could affect the pace of recovery in certain markets. Visibility into the second half of the year is limited, with potential challenges in maintaining growth momentum amid economic uncertainties. Operating expenses are expected to increase due to investments in new products and annual merit increases, which could impact profitability. The industrial and medical segment continues to face challenges, with a need for potential acquisitions to gain critical mass and improve performance. Warning! GuruFocus has detected 6 Warning Signs with AEIS. Q: Are you projecting a flat WFE (Wafer Fab Equipment) market, and how does your 10% growth outlook compare? A: We estimate WFE to be up 0-5% this year. Our projected 10% growth is above market due to factors like increased edge and depth intensity in leading-edge processes, strong traction of new products, and significant presence in logic and DRAM areas. - Steve Kelly, President and CEO Q: Can you provide insights on the potential tariff impact in the second half of the year? A: Most of our sales are to large companies that manage tariff issues themselves. Our exposure is mainly in industrial medical, with products built in Mexico and the Philippines. Many products are USMCA compliant, minimizing tariff impact. - Steve Kelly, President and CEO Q: What are the plans for improving the Industrial and Medical (I&M) segment, and is an acquisition necessary? A: Short-term, the I&M market is still recovering from excess inventories. Long-term, we aim to gain share through sole-source business and new design wins. Acquisitions are likely in I&M due to its fragmented market and sole-source positions. - Steve Kelly, President and CEO Q: How do you view the potential for high-volume production of Evos and Everest products? A: High-volume production will significantly exceed current levels. We've seeded the market with qualification units, and as they qualify, production ramps will start, increasing both unit and dollar market share. - Steve Kelly, President and CEO Q: What is the outlook for data center growth, and can you meet higher demand? A: We have strong visibility for 2025 with solid forecasts. We're increasing CapEx to support high-power requirements, positioning us to capitalize on higher volumes. - Paul Odom, Executive Vice President and CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Sign in to access your portfolio
Yahoo
01-05-2025
- Business
- Yahoo
Advanced Energy Industries Inc (AEIS) Q1 2025 Earnings Call Highlights: Strong Revenue Growth ...
Release Date: April 30, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Advanced Energy Industries Inc (NASDAQ:AEIS) reported a 24% year-over-year increase in revenue, driven by strong performance in data center computing and semiconductor sectors. The company achieved a gross margin of 37.9%, which was better than expected due to improvements in operational efficiency and favorable product mix. AEIS is experiencing strong demand for its new products, with significant traction in the semiconductor market, particularly for its Evos, Everest, and Navex products. The company has a diversified manufacturing footprint, which helps mitigate the impact of tariffs and optimize production to meet customer needs. AEIS has a strong balance sheet, enabling it to pursue strategic acquisitions and invest in capacity and capability for growth. Industrial and medical revenue declined by 16% sequentially and 23% year-over-year, primarily due to ongoing inventory destocking and weaker demand. The company faces macroeconomic uncertainty and potential impacts from new tariffs, which could affect the pace of recovery in certain markets. Visibility into the second half of the year is limited, with potential challenges in maintaining growth momentum amid economic uncertainties. Operating expenses are expected to increase due to investments in new products and annual merit increases, which could impact profitability. The industrial and medical segment continues to face challenges, with a need for potential acquisitions to gain critical mass and improve performance. Warning! GuruFocus has detected 6 Warning Signs with AEIS. Q: Are you projecting a flat WFE (Wafer Fab Equipment) market, and how does your 10% growth outlook compare? A: We estimate WFE to be up 0-5% this year. Our projected 10% growth is above market due to factors like increased edge and depth intensity in leading-edge processes, strong traction of new products, and significant presence in logic and DRAM areas. - Steve Kelly, President and CEO Q: Can you provide insights on the potential tariff impact in the second half of the year? A: Most of our sales are to large companies that manage tariff issues themselves. Our exposure is mainly in industrial medical, with products built in Mexico and the Philippines. Many products are USMCA compliant, minimizing tariff impact. - Steve Kelly, President and CEO Q: What are the plans for improving the Industrial and Medical (I&M) segment, and is an acquisition necessary? A: Short-term, the I&M market is still recovering from excess inventories. Long-term, we aim to gain share through sole-source business and new design wins. Acquisitions are likely in I&M due to its fragmented market and sole-source positions. - Steve Kelly, President and CEO Q: How do you view the potential for high-volume production of Evos and Everest products? A: High-volume production will significantly exceed current levels. We've seeded the market with qualification units, and as they qualify, production ramps will start, increasing both unit and dollar market share. - Steve Kelly, President and CEO Q: What is the outlook for data center growth, and can you meet higher demand? A: We have strong visibility for 2025 with solid forecasts. We're increasing CapEx to support high-power requirements, positioning us to capitalize on higher volumes. - Paul Odom, Executive Vice President and CFO For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus.
San Francisco Chronicle
30-04-2025
- Business
- San Francisco Chronicle
Advanced Energy: Q1 Earnings Snapshot
DENVER (AP) — DENVER (AP) — Advanced Energy Industries Inc. (AEIS) on Wednesday reported first-quarter net income of $24.7 million. The Denver-based company said it had net income of 65 cents per share. Earnings, adjusted for one-time gains and costs, were $1.23 per share. The results exceeded Wall Street expectations. The average estimate of six analysts surveyed by Zacks Investment Research was for earnings of $1.04 per share. The maker of power-conversion products posted revenue of $404.6 million in the period, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $385.3 million. For the current quarter ending in June, Advanced Energy expects its per-share earnings to range from $1.05 to $1.55. The company said it expects revenue in the range of $400 million to $440 million for the fiscal second quarter. Advanced Energy shares have decreased 17% since the beginning of the year. In the final minutes of trading on Wednesday, shares hit $96.42, a climb of nearly 1% in the last 12 months. _____
Washington Post
12-02-2025
- Business
- Washington Post
Advanced Energy: Q4 Earnings Snapshot
DENVER — DENVER — Advanced Energy Industries Inc. (AEIS) on Wednesday reported fourth-quarter net income of $48.9 million. On a per-share basis, the Denver-based company said it had net income of $1.29. Earnings, adjusted for one-time gains and costs, came to $1.30 per share. The results surpassed Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of $1.09 per share.
