Yahoo Finance Here's How Axcelis' (ACLS) is Placed Just Ahead of Q1 Earnings
Axcelis Technologies Inc ACLS is slated to report first-quarter 2024 results on May 1.
ACLS anticipates first-quarter revenues of approximately $242 million. Earnings per share (EPS) for the quarter are projected to be approximately $1.22.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $242.6 million, which suggests a decline of 4.5% from a year ago. The consensus mark for EPS is pegged at $1.26, indicating a decrease of 11.9% from the prior-year levels.
ACLS’ earnings beat the Zacks Consensus Estimate in each of the last four quarters by an average of 16.4%.
Axcelis Technologies, Inc. Price and EPS Surprise
Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote
Factors to Note
The company’s performance in the first quarter is likely to have benefited from robust customer demand for Purion’s suite of products, especially in the silicon-carbide (SiC) power market. Customers can leverage the Purion H200 silicon carbide tool to start the optimization process on their devices during the evaluation period.
Per a report from Markets and Markets, the silicon carbide market is expected to reach $17.2 billion by 2027, registering a CAGR of 32.6% from 2024 to 2027. The industry is likely to benefit from increasing adoption of electric vehicles and renewable energy, as mentioned in the report.
The mature process technology is benefiting due to increases in wafer starts, high implant capital intensity, and higher value implanters for specialty devices. The mature process technology segment is expected to constitute about 90% of the company’s shipped system revenues in 2024. Also, the advanced logic market has increased based on accelerating wafer start growth. This bodes well for the company’s solutions.
ACLS’ advanced Purion Product Extensions have been aiding it to gain further share in the image sensor and power device manufacturing space. With these product extensions in its portfolio, the company has been boasting implant products for both the silicon IGBT and silicon carbide power device market segments.
However, volatile supply-chain dynamics and global macroeconomic weakness are likely to have acted as headwinds. Soft demand from memory and advanced logic customers, along with increasing expenses toward research and development and infrastructure, is an added concern.
Recent Developments
In March, the company announced that it shipped numerous shipments of Purion M SiC medium current implanter to China-based power device chipmakers in the first quarter. The solution will be utilized for 150mm production of silicon carbide power devices for backing up industrial, energy, automotive and other power-intensive applications.
Prior to this, the company shipped multiple units of its Purion M SiC medium current implanter to numerous top power device chipmakers in China. These systems were sent out in the first quarter. The Purion M SiC medium current implanter will be used in the production of 150mm silicon carbide power devices for automotive, industrial, energy and other high-power applications.
What Our Model Says
Our proven model does not predict an earnings beat for Axcelis this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ACLS has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
QUALCOMM Incorporated QCOM has an Earnings ESP of +0.11% and currently carries a Zacks Rank of 2. QCOM is set to announce quarterly figures on May 1. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for QCOM’s to-be-reported quarter’s earnings and revenues is pegged at $2.30 per share and $9.32 billion, respectively. Shares of QCOM have gained 46.7% in the past year.
Silicon Motion Technology Corporation SIMO has an Earnings ESP of +5.96% and presently carries a Zacks Rank #2. SIMO is slated to release quarterly numbers on May 2.
The Zacks Consensus Estimate for SIMO’s to-be-reported quarter’s earnings and revenues is pegged at 58 cents per share and $179.8 million, respectively. Shares of SIMO have gained 20.9% in the past year.
Flex FLEX has an Earnings ESP of +1.36% and presently carries a Zacks Rank #3. FLEX is slated to release quarterly numbers on May 1.
The Zacks Consensus Estimate for FLEX’s to-be-reported quarter’s earnings and revenues is pegged at 55 cents per share and $6.1 billion, respectively. Shares of FLEX have gained 87.5% in the past year.
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