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Factors to Note Ahead of Axcelis' (ACLS) Q2 Earnings Release
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Axcelis Technologies Inc (ACLS - Free Report) is slated to report second-quarter 2024 results on Jul 31.
ACLS recently announced its preliminary second-quarter results, per which, now it expects revenues of more than $252 million while earnings per share (EPS) are projected to be more than $1.38. This compares with previously issued revenue guidance of $245 million and EPS of $1.30.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $252.4 million, which suggests a decline of 7.9% from a year ago. The consensus mark for EPS is pegged at $1.39, indicating a decrease of 25.3% from the prior-year level.
ACLS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters by an average of 18.9%. In the past year, shares have lost 38.4% against the industry’s growth of 0.7%.
Image Source: Zacks Investment Research
Factors to Note
The company’s performance in the second quarter is likely to have benefited from continued momentum in demand for its Purion’s suite of products, especially in the silicon-carbide power market. The transition to electric vehicles has been driving the silicon carbide power device market. This, in turn, is boosting demand for Purion Power series products, especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
Also, Axcelis, while announcing preliminary results, highlighted that the Systems revenues for the second quarter came in better than expected, partly attributed to better conversion of evaluation systems to revenues. Customer shipments to China are likely to have acted as an additional tailwind.
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.
Softness in memory and other general mature process technologies remain concerning. Also, lower fab utilization is likely to have weighed on the CS&I segment revenues.
Volatile supply-chain dynamics and global macroeconomic weakness are likely to have acted as additional headwinds along with increasing expenses toward research and development and infrastructure.
In June 2024, Axcelis expanded business operations in Japan by setting up new service offices. These offices, located in Chitose, Hokkaido and Kumamoto, Kyushu, will support the ACLS’ growing client base in the country.
ACLS noted that its service centers, which will facilitate localized support resources for the Purion ion implant equipment, while in production, are located near the customers.
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. This is not the case here.
ACLS has an Earnings ESP of 0.00% and a Zacks Rank #1. 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 season.
WDC is scheduled to report quarterly earnings on Jul 31. The Zacks Consensus Estimate for WDC’s to-be-reported quarter’s EPS and revenues is pegged at $1.26 and $3.77 billion, respectively. Shares of WDC have gained 60.4% in the past year.
Marriott International, Inc (MAR - Free Report) has an Earnings ESP of +6.24% and currently carries a Zacks Rank #2. MAR is scheduled to report quarterly earnings on Jul 31.
The Zacks Consensus Estimate for MAR’s to-be-reported quarter’s EPS and revenues is pegged at $2.49 and $6.44 billion, respectively. Shares of MAR have gained 17.2% in the past year.
Kinross Gold Corporation (KGC - Free Report) has an Earnings ESP of +8.04% and a Zacks Rank #2 at present. KGC is set to report quarterly figures on Jul 31.
The Zacks Consensus Estimate for KGC’s to-be-reported quarter’s EPS and revenues is pegged at 13 cents and $1.02 billion, respectively. Shares of KGC have surged 72.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Factors to Note Ahead of Axcelis' (ACLS) Q2 Earnings Release
Axcelis Technologies Inc (ACLS - Free Report) is slated to report second-quarter 2024 results on Jul 31.
ACLS recently announced its preliminary second-quarter results, per which, now it expects revenues of more than $252 million while earnings per share (EPS) are projected to be more than $1.38. This compares with previously issued revenue guidance of $245 million and EPS of $1.30.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $252.4 million, which suggests a decline of 7.9% from a year ago. The consensus mark for EPS is pegged at $1.39, indicating a decrease of 25.3% from the prior-year level.
ACLS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters by an average of 18.9%. In the past year, shares have lost 38.4% against the industry’s growth of 0.7%.
Image Source: Zacks Investment Research
Factors to Note
The company’s performance in the second quarter is likely to have benefited from continued momentum in demand for its Purion’s suite of products, especially in the silicon-carbide power market. The transition to electric vehicles has been driving the silicon carbide power device market. This, in turn, is boosting demand for Purion Power series products, especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
Also, Axcelis, while announcing preliminary results, highlighted that the Systems revenues for the second quarter came in better than expected, partly attributed to better conversion of evaluation systems to revenues. Customer shipments to China are likely to have acted as an additional tailwind.
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.
Softness in memory and other general mature process technologies remain concerning. Also, lower fab utilization is likely to have weighed on the CS&I segment revenues.
Volatile supply-chain dynamics and global macroeconomic weakness are likely to have acted as additional headwinds along with increasing expenses toward research and development and infrastructure.
Axcelis Technologies, Inc. Price and EPS Surprise
Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote
Recent Developments
In June 2024, Axcelis expanded business operations in Japan by setting up new service offices. These offices, located in Chitose, Hokkaido and Kumamoto, Kyushu, will support the ACLS’ growing client base in the country.
ACLS noted that its service centers, which will facilitate localized support resources for the Purion ion implant equipment, while in production, are located near the customers.
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. This is not the case here.
ACLS has an Earnings ESP of 0.00% and a Zacks Rank #1. 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 season.
Western Digital Corporation (WDC - Free Report) has an Earnings ESP of +31.75% and currently sports a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
WDC is scheduled to report quarterly earnings on Jul 31. The Zacks Consensus Estimate for WDC’s to-be-reported quarter’s EPS and revenues is pegged at $1.26 and $3.77 billion, respectively. Shares of WDC have gained 60.4% in the past year.
Marriott International, Inc (MAR - Free Report) has an Earnings ESP of +6.24% and currently carries a Zacks Rank #2. MAR is scheduled to report quarterly earnings on Jul 31.
The Zacks Consensus Estimate for MAR’s to-be-reported quarter’s EPS and revenues is pegged at $2.49 and $6.44 billion, respectively. Shares of MAR have gained 17.2% in the past year.
Kinross Gold Corporation (KGC - Free Report) has an Earnings ESP of +8.04% and a Zacks Rank #2 at present. KGC is set to report quarterly figures on Jul 31.
The Zacks Consensus Estimate for KGC’s to-be-reported quarter’s EPS and revenues is pegged at 13 cents and $1.02 billion, respectively. Shares of KGC have surged 72.9% in the past year.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.