Latest news with #KulickeAndSoffa
Yahoo
06-08-2025
- Business
- Yahoo
Kulicke and Soffa (NASDAQ:KLIC) Q2: Beats On Revenue, Provides Optimistic Revenue Guidance for Next Quarter
Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) reported Q2 CY2025 results topping the market's revenue expectations , but sales fell by 18.3% year on year to $148.4 million. On top of that, next quarter's revenue guidance ($170 million at the midpoint) was surprisingly good and 7.4% above what analysts were expecting. Its non-GAAP profit of $0.07 per share was 27.3% above analysts' consensus estimates. Is now the time to buy Kulicke and Soffa? Find out in our full research report. Kulicke and Soffa (KLIC) Q2 CY2025 Highlights: Revenue: $148.4 million vs analyst estimates of $145.8 million (18.3% year-on-year decline, 1.8% beat) Adjusted EPS: $0.07 vs analyst estimates of $0.06 (27.3% beat) Adjusted Operating Income: $1.59 million vs analyst estimates of -$931,670 (1.1% margin, significant beat) Revenue Guidance for Q3 CY2025 is $170 million at the midpoint, above analyst estimates of $158.3 million Adjusted EPS guidance for Q3 CY2025 is $0.22 at the midpoint, above analyst estimates of $0.19 Operating Margin: -4.1%, down from 4.6% in the same quarter last year Free Cash Flow Margin: 3.7%, down from 13.3% in the same quarter last year Inventory Days Outstanding: 182, up from 171 in the previous quarter Market Capitalization: $1.71 billion Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, "We continue to execute on multiple technology transitions supported by parallel customer engagements. As we expand our portfolio, we are unlocking new opportunities across general semiconductor, memory, automotive, and industrial markets. Additionally, we are encouraged by positive market feedback of our latest solutions and also by recent order momentum within our highest-volume regions." Company Overview Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices Revenue Growth A company's long-term sales performance can indicate its overall quality. Any business can have short-term success, but a top-tier one grows for years. Regrettably, Kulicke and Soffa's sales grew at a sluggish 2.4% compounded annual growth rate over the last five years. This fell short of our benchmarks and is a poor baseline for our analysis. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions. We at StockStory place the most emphasis on long-term growth, but within semiconductors, a half-decade historical view may miss new demand cycles or industry trends like AI. Kulicke and Soffa's performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 10.8% annually. This quarter, Kulicke and Soffa's revenue fell by 18.3% year on year to $148.4 million but beat Wall Street's estimates by 1.8%. Despite the beat, the drop in sales could mean that the current downcycle is deepening. Company management is currently guiding for a 6.2% year-on-year decline in sales next quarter. Looking further ahead, sell-side analysts expect revenue to grow 2.3% over the next 12 months. While this projection indicates its newer products and services will fuel better top-line performance, it is still below average for the sector. 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. Product Demand & Outstanding Inventory Days Inventory Outstanding (DIO) is an important metric for chipmakers, as it reflects a business' capital intensity and the cyclical nature of semiconductor supply and demand. In a tight supply environment, inventories tend to be stable, allowing chipmakers to exert pricing power. Steadily increasing DIO can be a warning sign that demand is weak, and if inventories continue to rise, the company may have to downsize production. This quarter, Kulicke and Soffa's DIO came in at 182, which is 23 days above its five-year average, suggesting that the company's inventory has grown to higher levels than we've seen in the past. Key Takeaways from Kulicke and Soffa's Q2 Results It was good to see Kulicke and Soffa beat analysts' revenue, EPS, and adjusted operating income expectations this quarter. We were also excited its guidance for next quarter outperformed Wall Street's estimates by a wide margin. A slight blemish is that its inventory levels materially increased. Zooming out, we think this was a good print with some key areas of upside. The stock traded up 4.2% to $33.43 immediately after reporting. Indeed, Kulicke and Soffa had a rock-solid quarterly earnings result, but is this stock a good investment here? When making that decision, it's important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here, it's free. 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
05-08-2025
- Business
- Yahoo
What To Expect From Kulicke and Soffa's (KLIC) Q2 Earnings
Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be reporting results this Wednesday after the bell. Here's what you need to know. Kulicke and Soffa missed analysts' revenue expectations by 1.9% last quarter, reporting revenues of $162 million, down 5.9% year on year. It was a softer quarter for the company, with a significant miss of analysts' adjusted operating income estimates and a significant miss of analysts' EPS estimates. Is Kulicke and Soffa a buy or sell going into earnings? Read our full analysis here, it's free. This quarter, analysts are expecting Kulicke and Soffa's revenue to decline 19.7% year on year to $145.8 million, a further deceleration from the 4.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.06 per share. The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kulicke and Soffa has missed Wall Street's revenue estimates twice over the last two years. Looking at Kulicke and Soffa's peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Amkor delivered year-on-year revenue growth of 3.4%, beating analysts' expectations by 6.3%, and Lam Research reported revenues up 33.6%, topping estimates by 3.3%. Amkor traded up 18.1% following the results while Lam Research was down 4.3%. Read our full analysis of Amkor's results here and Lam Research's results here. Investors in the semiconductor manufacturing segment have had steady hands going into earnings, with share prices flat over the last month. Kulicke and Soffa is down 8% during the same time and is heading into earnings with an average analyst price target of $39.60 (compared to the current share price of $32.85). 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. StockStory is growing and hiring equity analyst and marketing roles. Are you a 0 to 1 builder passionate about the markets and AI? See the open roles here. 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
29-06-2025
- Business
- Yahoo
The 5 Most Interesting Analyst Questions From Kulicke and Soffa's Q1 Earnings Call
Kulicke and Soffa's first quarter results fell short of Wall Street's expectations, with both revenue and adjusted earnings missing analyst estimates. The market responded negatively, reflecting investor concerns about ongoing volatility in the company's core semiconductor equipment markets. Management attributed the underperformance to customer hesitation in capital equipment spending, particularly in Southeast Asia's automotive and industrial sectors, a trend they linked to global trade uncertainty. CEO Fusen Chen described the quarter as impacted by 'hesitation and a more defensive capacity planning approach,' noting that the company's restructuring efforts, including the discontinuation of its electronics assembly equipment business, contributed to near-term margin pressure. 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). 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.
Yahoo
06-05-2025
- Business
- Yahoo
Kulicke and Soffa Industries, Inc. (KLIC): One of the Top Dividend Challengers in 2025
We recently published a list of Dividend Challengers 2025: Top 25. In this article, we are going to take a look at where Kulicke and Soffa Industries, Inc. (NASDAQ:KLIC) stands against other dividend challenger stocks. Dividend Challengers refers to US-listed companies that have raised their dividends every year for a minimum of five, and less than ten, consecutive years. These companies have demonstrated a relatively recent commitment to sharing profits with shareholders through dividends. Investors usually gravitate towards such firms because historically, dividend growers outperform the returns of the broader market. Moreover, most of these firms have a track record of exhibiting lower price volatility, which makes them favorable to those looking for stable income. Investor interest in stocks with reliable dividend growth remains strong due to long-term investment potential. As a result, many of these financially sound firms become targets for investors looking to manage risk without sacrificing growth. The Fidelity Equity-Income Fund and the Fidelity Global Equity Income Fund portfolios, managed by Ramona Persaud, seek stable dividend-paying firms with attractive valuations. She pointed out that declining interest rates tend to make dividend stocks more appealing than bonds due to relatively attractive yields. Indeed, Persaud argued lower rates could foster a more broad-based rally for stocks beyond the market gains, which have been largely concentrated on a handful of large-cap growth names. Her focus is on well-performing firms with reliable cash flows and strong, growing dividends. According to analysts, investors can adopt a strategy that balances both income and growth by focusing on dividend growers. Historically, they have shown less volatility and often outperformed the broader market, including benchmarks like the S&P Equal Weight Index. A report from Guggenheim found that between May 2005 and December 2024, companies that initiated or raised their dividends achieved an average annual return of 10.5%, compared to just 5.5% for those that reduced or suspended payouts. By contrast, the overall market averaged a 10.4% return during the same period, slightly lagging behind the dividend growers. The report also emphasized that dividend growth strategies tend to perform well across different market environments, both bullish and bearish. This makes them a compelling option for investors seeking long-term returns while aiming to protect their portfolios during downturns. Bank of America also noted that dividend-paying stocks helped stabilize portfolios during the turbulent month of March. As trade policy uncertainty under President Donald Trump rattled markets, value and dividend-oriented names held up better. In an April 11 report, BofA's quant strategist Nigel Tupper highlighted these trends and pointed to several top-performing dividend stocks during the market's choppy period.
