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Onto Innovation (ONTO) Q3 Earnings & Revenues Top Estimates
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Onto Innovation Inc (ONTO - Free Report) reported third-quarter 2022 earnings of $1.35 per share, up 38% year over year and beating the Zacks Consensus Estimate by 3.1%.
Revenues of $254 million beat the Zacks Consensus Estimate by 1.7%. The top line increased 27% year over year. The upside can be attributed to higher demand from several end markets, particularly advanced nodes and Inspection market, owing to increasing demand for the compound semiconductor power device market.
The company’s Atlas metrology product line has gained traction in the quarter under review, owing to increased adoption of gate-all-around transistor structures and high stack V-NAND. Onto expects the metrology business to grow by 40% in 2022.
Onto Innovation Inc. Price, Consensus and EPS Surprise
In the quarter under review, the company announced the launch of the Echo system to expand its acoustic metrology product line.
The customer acceptance of the company’s JetStep 3500 lithography systems also acted as a tailwind. In the quarter under review, the company has received orders for 4 JetStep 3500.
Revenues from the advanced nodes market were up 57% year over year, while revenues from specialty devices and advanced packaging increased 14% year over year. Software and services revenue was up 8% year over year. Sales from specialty devices and advanced packaging contributed 40% to revenues. Advanced node markets contributed 44% and software and services accounted for 16%.
Following the announcement, the company’s shares were down 2.9% in the aftermarket trading on Oct 27. In the past year, shares of Onto Innovation have lost 17.8% compared with the industry’s decline of 28.4%.
Image Source: Zacks Investment Research
Margin Details
Total operating expenses increased to $79.5 million, rising 20.1% from $66.2 million in the prior-year quarter.
Non-GAAP gross profit rose to $138.8 million from $110.5 million. Non-GAAP gross profit margin remained unchanged year over year at 55%. Non-GAAP operating income was $78.3 million compared with $58.9 million in the year-ago quarter. Non-GAAP operating margin was 31%, up from 29% reported in the prior-year quarter.
Balance Sheet
As of Oct 1, 2022, the company had $553 million in cash and cash equivalents, with $169.6 million of total current liabilities compared with $545 million and $176.7 million as of Jul 2, 2022. Accounts receivable stood at $235.5 million.
Q4 Guidance
The company expects revenues of $244-$256 million. The Zacks Consensus Estimate for revenues is pegged at $242.5 million.
Non-GAAP earnings per share are estimated to be $1.25-$1.40. The Zacks Consensus Estimate for earnings is pegged at $1.23 per share.
Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #5 (Strong Sell).
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 26.9% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 11% in the past year.
The Zacks Consensus Estimate for Blackbaud’s fiscal 2023 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 8.6%. Shares of BLKB have decreased 26.5% in the past year.
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Onto Innovation (ONTO) Q3 Earnings & Revenues Top Estimates
Onto Innovation Inc (ONTO - Free Report) reported third-quarter 2022 earnings of $1.35 per share, up 38% year over year and beating the Zacks Consensus Estimate by 3.1%.
Revenues of $254 million beat the Zacks Consensus Estimate by 1.7%. The top line increased 27% year over year. The upside can be attributed to higher demand from several end markets, particularly advanced nodes and Inspection market, owing to increasing demand for the compound semiconductor power device market.
The company’s Atlas metrology product line has gained traction in the quarter under review, owing to increased adoption of gate-all-around transistor structures and high stack V-NAND. Onto expects the metrology business to grow by 40% in 2022.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote
In the quarter under review, the company announced the launch of the Echo system to expand its acoustic metrology product line.
The customer acceptance of the company’s JetStep 3500 lithography systems also acted as a tailwind. In the quarter under review, the company has received orders for 4 JetStep 3500.
Revenues from the advanced nodes market were up 57% year over year, while revenues from specialty devices and advanced packaging increased 14% year over year. Software and services revenue was up 8% year over year. Sales from specialty devices and advanced packaging contributed 40% to revenues. Advanced node markets contributed 44% and software and services accounted for 16%.
Following the announcement, the company’s shares were down 2.9% in the aftermarket trading on Oct 27. In the past year, shares of Onto Innovation have lost 17.8% compared with the industry’s decline of 28.4%.
Image Source: Zacks Investment Research
Margin Details
Total operating expenses increased to $79.5 million, rising 20.1% from $66.2 million in the prior-year quarter.
Non-GAAP gross profit rose to $138.8 million from $110.5 million. Non-GAAP gross profit margin remained unchanged year over year at 55%. Non-GAAP operating income was $78.3 million compared with $58.9 million in the year-ago quarter. Non-GAAP operating margin was 31%, up from 29% reported in the prior-year quarter.
Balance Sheet
As of Oct 1, 2022, the company had $553 million in cash and cash equivalents, with $169.6 million of total current liabilities compared with $545 million and $176.7 million as of Jul 2, 2022. Accounts receivable stood at $235.5 million.
Q4 Guidance
The company expects revenues of $244-$256 million. The Zacks Consensus Estimate for revenues is pegged at $242.5 million.
Non-GAAP earnings per share are estimated to be $1.25-$1.40. The Zacks Consensus Estimate for earnings is pegged at $1.23 per share.
Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #5 (Strong Sell).
Some better-ranked stocks from the broader technology space are InterDigital (IDCC - Free Report) , Pure Storage (PSTG - Free Report) and Blackbaud (BLKB - Free Report) . Pure Storage and InterDigital currently sport a Zacks Rank #1 (Strong Buy) whereas Blackbaud holds a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks.
The Zacks Consensus Estimate for InterDigital’s 2022 earnings is pegged at $2.45 per share, up 2.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
InterDigital’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 81.9%. Shares of IDCC have decreased 26.9% in the past year.
The Zacks Consensus Estimate for PSTG 2022 earnings is pegged at $1.18 per share, rising 24.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 35.5%.
Pure Storage’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 171.8%. Shares of PSTG have increased 11% in the past year.
The Zacks Consensus Estimate for Blackbaud’s fiscal 2023 earnings is pegged at $2.55 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 3%.
Blackbaud’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 8.6%. Shares of BLKB have decreased 26.5% in the past year.