Onto Innovation Inc (ONTO - Free Report) reported second-quarter 2023 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 4.8%. The bottom line decreased 38.3% year over year.
Revenues of $190.7 million also lagged the Zacks Consensus Estimate by 6.1%. The top line declined 25.6% year over year. The downtick can be mainly attributed to delayed shipment of three lithography system in the quarter under review.
Specialty devices and advanced packaging revenues increased 20% sequentially. Revenues from power device customers grew 35%. However, revenues from the advanced nodes market were down 43%.
Sales from specialty devices and advanced packaging, and advanced node markets contributed 69% and 20% to revenues, respectively. Software and services accounted for 21% of the top line.
Margin Details
Total operating expenses increased to $75.7 million, rising 1.3% from $74.7 million in the prior-year quarter.
Non-GAAP gross profit fell to $100.5 million from $132.1 million in the year-earlier quarter. Non-GAAP gross profit margin expanded 100 basis points to 53%.
Non-GAAP operating income was $40.6 million compared with $73.1 million in the year-ago quarter. Non-GAAP operating margin was 21%, down from 29% reported in the previous-year quarter.
Balance Sheet
As of Jul 1, the company had $609.6 million in cash and cash equivalents with $136.9 million of total current liabilities compared with $583.5 million and $148.4 million, respectively, as of Apr 1, 2023. Accounts receivable was $187.9 million.
Q3 Guidance
Management expects revenues in the range of $205-$225 million. The Zacks Consensus Estimate is pegged at $203.7 million.
Non-GAAP earnings per share are projected to be between 85 cents and $1.05. The consensus mark is pegged at 96 cents.
Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Pegasystems (PEGA - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) while Salesforce and Pegasystems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat estimates in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 63.5% in the past year.
The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings surpassed estimates in the last four quarters, the average beat being 15.5%. Shares of CRM have grown 9.7% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings has improved 6.6% in the past 60 days to $1.46 per share. PEGA’s earnings outshined estimates in the last four quarters, the average surprise being 166.2%. Shares of PEGA have jumped 12.7% in the past year.
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Onto Innovation Inc (ONTO - Free Report) reported second-quarter 2023 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 4.8%. The bottom line decreased 38.3% year over year.
Revenues of $190.7 million also lagged the Zacks Consensus Estimate by 6.1%. The top line declined 25.6% year over year. The downtick can be mainly attributed to delayed shipment of three lithography system in the quarter under review.
Specialty devices and advanced packaging revenues increased 20% sequentially. Revenues from power device customers grew 35%. However, revenues from the advanced nodes market were down 43%.
Sales from specialty devices and advanced packaging, and advanced node markets contributed 69% and 20% to revenues, respectively. Software and services accounted for 21% of the top line.
Margin Details
Total operating expenses increased to $75.7 million, rising 1.3% from $74.7 million in the prior-year quarter.
Non-GAAP gross profit fell to $100.5 million from $132.1 million in the year-earlier quarter. Non-GAAP gross profit margin expanded 100 basis points to 53%.
Non-GAAP operating income was $40.6 million compared with $73.1 million in the year-ago quarter. Non-GAAP operating margin was 21%, down from 29% reported in the previous-year quarter.
Balance Sheet
As of Jul 1, the company had $609.6 million in cash and cash equivalents with $136.9 million of total current liabilities compared with $583.5 million and $148.4 million, respectively, as of Apr 1, 2023. Accounts receivable was $187.9 million.
Q3 Guidance
Management expects revenues in the range of $205-$225 million. The Zacks Consensus Estimate is pegged at $203.7 million.
Non-GAAP earnings per share are projected to be between 85 cents and $1.05. The consensus mark is pegged at 96 cents.
Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Pegasystems (PEGA - Free Report) . Badger Meter sports a Zacks Rank #1 (Strong Buy) while Salesforce and Pegasystems carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has gained 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat estimates in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 63.5% in the past year.
The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, up 0.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings surpassed estimates in the last four quarters, the average beat being 15.5%. Shares of CRM have grown 9.7% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings has improved 6.6% in the past 60 days to $1.46 per share. PEGA’s earnings outshined estimates in the last four quarters, the average surprise being 166.2%. Shares of PEGA have jumped 12.7% in the past year.
4 Oil Stocks with Massive Upsides
Global demand for oil is through the roof... and oil producers are struggling to keep up. So even though oil prices are well off their recent highs, you can expect big profits from the companies that supply the world with "black gold."
Zacks Investment Research has just released an urgent special report to help you bank on this trend.
In Oil Market on Fire, you'll discover 4 unexpected oil and gas stocks positioned for big gains in the coming weeks and months. You don't want to miss these recommendations.
Download your free report now to see them.
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