We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Axcelis (ACLS) Jumps 58.4% YTD: Will the Uptrend Continue?
Read MoreHide Full Article
Axcelis Technologies (ACLS - Free Report) is witnessing strong momentum, with shares having soared 58.4% year to date compared with 28.5% and 19.5% growth of the sub-industry and S&P Composite, respectively.
Axcelis is a leading producer of ion implantation equipment used in the fabrication of semiconductors.
The top-line performance is being driven by robust customer demand for Purion suite of products, especially in the silicon-carbide power market. In the third quarter of 2023, ACLS reported revenues of $292.3 million, up 6.7% year over year.
The transition to electric vehicles is driving the silicon-carbide (SiC) 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.
ACLS expects more than 60% of its shipped system revenues from power markets in 2023. It expects nearly 35% of total system revenues to be generated from silicon carbide applications in 2023. The power device market segment represented 39% of the company’s shipped systems revenues in 2022.
Image Source: Zacks Investment Research
In October 2023, the company shipped Purion EXE SiC Power Series 200mm high energy implanter to a Japan-based SiC power device chipmaker.
Driven by solid growth of Purion Power Series product line, management continues to anticipate revenues for 2023 to be greater than $1.1 billion, up nearly 20% year over year. For the fourth quarter, Axcelis expects revenues of $295 million. By 2025, the company expects revenues of $1.3 billion.
Axcelis is working on lowering cost of goods sold and tightly manage overall spending to boost margin performance. The company expects fourth quarter gross margin to be roughly 45%. It anticipates 2023 gross margin to be nearly 43.6%.
However, ACLS’ performance is likely to be affected due to volatile supply-chain dynamics and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds for this Zacks Rank #3 (Hold) stock.
A Look at Estimates
ACLS’ earnings per share are indicated to increase 32.8% and 8% on a year-over-year basis to $7.25 and $7.83 in 2023 and 2024, respectively. Revenues for 2023 and 2024 are projected to rise 21.3% and 7.8% to $1.12 billion and $1.2 billion, respectively.
The Zacks Consensus Estimate for 2023 earnings per share has risen 3.4% in the past 60 days, reflecting analysts’ optimism.
The Zacks Consensus Estimate for Adobe’s fiscal 2023 EPS has remained unchanged in the past 60 days at $15.93. ADBE’s long-term earnings growth rate is 13.5%.
Adobe’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.3%. Shares of ADBE have surged 85.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2024 EPS has remained flat in the past 30 days at $12.52. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have gained 70.4% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11.8%. Shares of WTS have surged 31.4% in the past year.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.
Image: Bigstock
Axcelis (ACLS) Jumps 58.4% YTD: Will the Uptrend Continue?
Axcelis Technologies (ACLS - Free Report) is witnessing strong momentum, with shares having soared 58.4% year to date compared with 28.5% and 19.5% growth of the sub-industry and S&P Composite, respectively.
Axcelis is a leading producer of ion implantation equipment used in the fabrication of semiconductors.
The top-line performance is being driven by robust customer demand for Purion suite of products, especially in the silicon-carbide power market. In the third quarter of 2023, ACLS reported revenues of $292.3 million, up 6.7% year over year.
The transition to electric vehicles is driving the silicon-carbide (SiC) 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.
ACLS expects more than 60% of its shipped system revenues from power markets in 2023. It expects nearly 35% of total system revenues to be generated from silicon carbide applications in 2023. The power device market segment represented 39% of the company’s shipped systems revenues in 2022.
Image Source: Zacks Investment Research
In October 2023, the company shipped Purion EXE SiC Power Series 200mm high energy implanter to a Japan-based SiC power device chipmaker.
Driven by solid growth of Purion Power Series product line, management continues to anticipate revenues for 2023 to be greater than $1.1 billion, up nearly 20% year over year. For the fourth quarter, Axcelis expects revenues of $295 million. By 2025, the company expects revenues of $1.3 billion.
Axcelis is working on lowering cost of goods sold and tightly manage overall spending to boost margin performance. The company expects fourth quarter gross margin to be roughly 45%. It anticipates 2023 gross margin to be nearly 43.6%.
However, ACLS’ performance is likely to be affected due to volatile supply-chain dynamics and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds for this Zacks Rank #3 (Hold) stock.
A Look at Estimates
ACLS’ earnings per share are indicated to increase 32.8% and 8% on a year-over-year basis to $7.25 and $7.83 in 2023 and 2024, respectively. Revenues for 2023 and 2024 are projected to rise 21.3% and 7.8% to $1.12 billion and $1.2 billion, respectively.
The Zacks Consensus Estimate for 2023 earnings per share has risen 3.4% in the past 60 days, reflecting analysts’ optimism.
Key Picks
Some better-ranked stocks worth consideration in the broader technology space are Adobe (ADBE - Free Report) , Synopsys (SNPS - Free Report) and Watts Water Technologies (WTS - Free Report) , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Adobe’s fiscal 2023 EPS has remained unchanged in the past 60 days at $15.93. ADBE’s long-term earnings growth rate is 13.5%.
Adobe’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 3.3%. Shares of ADBE have surged 85.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2024 EPS has remained flat in the past 30 days at $12.52. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have gained 70.4% in the past year.
The Zacks Consensus Estimate for Watts Water Technologies 2023 EPS has improved 2.8% in the past 60 days to $8.00.
WTS’ earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 11.8%. Shares of WTS have surged 31.4% in the past year.