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Onto Innovation (ONTO) Q1 Earnings & Revenues Top, Up Y/Y
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Onto Innovation Inc (ONTO - Free Report) reported first-quarter 2024 earnings of $1.18 per share, which beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 28.3% year over year.
Revenues of $228.8 million beat the Zacks Consensus Estimate by 2.9%. The top line increased 14.9% year over year. The uptick can be mainly attributed to customer capacity expansions for high-performance computing and high bandwidth memory supporting AI market growth.
Revenues also came in within the company’s guided range of $215-$230 million. Management noted that Dragonfly system witnessed continued momentum owing to increasing demand for the platform in advanced packaging of AI compute devices. In the first quarter, revenues from Dragonfly systems soared 30% quarter over quarter.
Advanced nodes revenues of $27 million increased 45% sequentially.
Specialty devices and advanced packaging revenues of $158 million witnessed a marginal sequential rise. Revenues from software and services were up 4% sequentially to $44 million.
Sales from specialty devices and advanced packaging, and advanced node markets contributed 69% and 12% to revenues, respectively. Software and services accounted for 19% of the top line.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Non-GAAP operating expenses were $61.8 million, up 5.8% from $58.4 million in the prior-year quarter, owing to extensive investments in applications engineering.
Non-GAAP gross profit increased to $119.1 million from $107.3 million in the year-earlier quarter. Non-GAAP gross profit margin contracted 200 basis points to 52%.
Non-GAAP operating income was $57.3 million compared with $48.9 million in the year-ago quarter. Non-GAAP operating margin was unchanged from the previous-year quarter at 25%.
Balance Sheet
As of Mar 30, the company had $740.9 million in cash and cash equivalents with $147.1 million of total current liabilities compared with $697.8 million and $147.7 million, respectively, as of Dec 30, 2023. Accounts receivable was $231.9 million.
Q2 Guidance
Management expects revenues in the range of $230-$240 million. The Zacks Consensus Estimate is pegged at $224.8 million.
Non-GAAP earnings per share are projected to be between $1.14 and $1.26. The consensus mark is pegged at $1.10.
Gross margin is forecast in the range of 52-54%. Operating expenses are expected to be between $62 million and $64 million. Operating expenses will be at elevated levels owing to occurrence of annual compensation elements in the second quarter.
Zacks Rank
Onto Innovation currently has a Zacks Rank #3 (Hold)
BMI’s first-quarter 2024 EPS of 99 cents beat the Zacks Consensus Estimate by 16.5%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 66 cents. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.89, up 9.9% in the past 60 days.
BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.7%. The long-term earnings growth rate is 15.6%. Shares of BMI have soared 42.1% in the past year.
CRM’s fourth-quarter fiscal 2024 non-GAAP EPS increased 36% to $2.29 from $1.68 in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $2.26. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $9.71. The long-term earnings growth rate is 17.4%.
Salesforce’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 5.1%. Shares of CRM have gained 34.3% in the past year.
For the fourth quarter of fiscal 2024, Descartes delivered EPS of 37 cents, up 9% year over year and beat the Zacks Consensus Estimate by 23.3%.
The Zacks Consensus Estimate for fiscal 2025 EPS has increased 1.2% in the past 60 days to $1.69. Descartes earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missing in the remaining two quarters, the average surprise being 5.1%. Shares of DSGX have improved 24.9% in the past year.
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Onto Innovation (ONTO) Q1 Earnings & Revenues Top, Up Y/Y
Onto Innovation Inc (ONTO - Free Report) reported first-quarter 2024 earnings of $1.18 per share, which beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 28.3% year over year.
Revenues of $228.8 million beat the Zacks Consensus Estimate by 2.9%. The top line increased 14.9% year over year. The uptick can be mainly attributed to customer capacity expansions for high-performance computing and high bandwidth memory supporting AI market growth.
Revenues also came in within the company’s guided range of $215-$230 million. Management noted that Dragonfly system witnessed continued momentum owing to increasing demand for the platform in advanced packaging of AI compute devices. In the first quarter, revenues from Dragonfly systems soared 30% quarter over quarter.
Advanced nodes revenues of $27 million increased 45% sequentially.
Specialty devices and advanced packaging revenues of $158 million witnessed a marginal sequential rise. Revenues from software and services were up 4% sequentially to $44 million.
Sales from specialty devices and advanced packaging, and advanced node markets contributed 69% and 12% to revenues, respectively. Software and services accounted for 19% of the top line.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote
Margin Details
Non-GAAP operating expenses were $61.8 million, up 5.8% from $58.4 million in the prior-year quarter, owing to extensive investments in applications engineering.
Non-GAAP gross profit increased to $119.1 million from $107.3 million in the year-earlier quarter. Non-GAAP gross profit margin contracted 200 basis points to 52%.
Non-GAAP operating income was $57.3 million compared with $48.9 million in the year-ago quarter. Non-GAAP operating margin was unchanged from the previous-year quarter at 25%.
Balance Sheet
As of Mar 30, the company had $740.9 million in cash and cash equivalents with $147.1 million of total current liabilities compared with $697.8 million and $147.7 million, respectively, as of Dec 30, 2023. Accounts receivable was $231.9 million.
Q2 Guidance
Management expects revenues in the range of $230-$240 million. The Zacks Consensus Estimate is pegged at $224.8 million.
Non-GAAP earnings per share are projected to be between $1.14 and $1.26. The consensus mark is pegged at $1.10.
Gross margin is forecast in the range of 52-54%. Operating expenses are expected to be between $62 million and $64 million. Operating expenses will be at elevated levels owing to occurrence of annual compensation elements in the second quarter.
Zacks Rank
Onto Innovation currently has a Zacks Rank #3 (Hold)
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and The Descartes Systems Group Inc (DSGX - Free Report) . While BMI sports a Zacks Rank #1 (Strong Buy), CRM and DSGX carry a Zacks Rank of 2 (Buy) each, at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BMI’s first-quarter 2024 EPS of 99 cents beat the Zacks Consensus Estimate by 16.5%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 66 cents. The Zacks Consensus Estimate for 2024 EPS is pegged at $3.89, up 9.9% in the past 60 days.
BMI’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 12.7%. The long-term earnings growth rate is 15.6%. Shares of BMI have soared 42.1% in the past year.
CRM’s fourth-quarter fiscal 2024 non-GAAP EPS increased 36% to $2.29 from $1.68 in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of $2.26. The Zacks Consensus Estimate for fiscal 2025 EPS is pegged at $9.71. The long-term earnings growth rate is 17.4%.
Salesforce’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 5.1%. Shares of CRM have gained 34.3% in the past year.
For the fourth quarter of fiscal 2024, Descartes delivered EPS of 37 cents, up 9% year over year and beat the Zacks Consensus Estimate by 23.3%.
The Zacks Consensus Estimate for fiscal 2025 EPS has increased 1.2% in the past 60 days to $1.69. Descartes earnings beat the Zacks Consensus Estimate in two of the last four quarters, while missing in the remaining two quarters, the average surprise being 5.1%. Shares of DSGX have improved 24.9% in the past year.