Back to top

Image: Bigstock

Axcelis (ACLS) to Post Q1 Earnings: What's in the Offing?

Read MoreHide Full Article

Axcelis Technologies Inc (ACLS - Free Report) is slated to report first-quarter 2023 results on May 3.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $240 million, which suggests growth of 17.9% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $1.16 per share, indicating a year-over-year decrease of 4.9%.

ACLS’ earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 21.2%, on average.
In the last reported quarter, revenues jumped 29% year over year to $266.1 million driven by strong demand for the Purion products. Axcelis reported earnings of $1.71 per share compared with $1.05 in the prior-year quarter

Axcelis Technologies, Inc. Price and EPS Surprise

 

Axcelis Technologies, Inc. Price and EPS Surprise

Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote

 

For the first quarter of 2023, Axcelis expects revenues of $240 million while earnings per share are expected to be $1.25. Gross margin is anticipated to be 41.5%. Operating profit is projected to be $48 million.

Factors to Note

Axcelis is likely to have benefited from the continued demand for the Purion suite of products. The transition to electric vehicles is driving the silicon-carbide power device market. This, in turn, is boosting demand for Purion products especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.

Driven by solid growth in the Purion Power Series product line, the power device market segment represented 39% of the company’s shipped systems revenues in 2022. Increasing Purion installed base is likely to have boostedAxcelis’ Customer Solutions & Innovation aftermarket business.

ACLS’ advanced Purion Product Extensions have been aiding Axcelis to gain further share in the sensor and power device manufacturing space.  With these product extensions in its portfolio, Axcelis has been boasting implant products for both the silicon IGBT and silicon carbide power device market segments.

However, ACLS’ performance in the first quarter is likely to be affected due to ongoing supply-chain constraints and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds.

Recent Developments

In April 2023, the company announced that it completed the 500th shipment of its Purion ion implanter system to a prominent semiconductor device maker based in North America.

What Our Model Says

Our proven model does not conclusively 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.

Marriott International (MAR - Free Report) has an Earnings ESP of +0.81% and currently flaunts a Zacks Rank of 2. MAR is set to announce quarterly figures on May 2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for MAR’s to-be-reported quarter’s earnings and revenues is pegged at $1.86 per share and $5.28 billion, respectively. Shares of MAR are down 6.8% in the past year.

Booking Holdings (BKNG - Free Report) has an Earnings ESP of +14.56% and presently carries a Zacks Rank #2. BKNG is slated to release quarterly numbers on May 4.

The Zacks Consensus Estimate for BKNG’s to-be-reported quarter’s earnings and revenues is pegged at $10.62 per share and $3.74 billion, respectively. Shares of BKNG are up 19.4% in the past year.

Post Holdings (POST - Free Report) has an Earnings ESP of +2.94% and currently sports a Zacks Rank #1. POST is scheduled to report quarterly earnings on May 4.

The Zacks Consensus Estimate for POST’s to-be-reported quarter’s earnings and revenues is pegged at 68 cents per share and $1.56 billion, respectively. Shares of POST are up 22.5% in the past year.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

Published in