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.
Advanced Energy (AEIS) Q4 Earnings & Revenues Beat, Rise Y/Y
Read MoreHide Full Article
Advanced Energy Industries, Inc. (AEIS - Free Report) reported fourth-quarter 2020 non-GAAP earnings of $1.49 per share, beating the Zacks Consensus Estimate by 9.6%. Further, the bottom line was within the management’s guidance of $1.10 to $1.50 per share.
The bottom line also improved 71.3% from the year-ago quarter but declined 10.2% sequentially.
Revenues of $370.97 million surpassed the Zacks Consensus Estimate of $365.03 million and were within management’s guidance of $340-$380 million. Moreover, the top line rose9.7% from the year-ago quarter but decreased 4.8% from the prior quarter.
The year-over-year improvement in the top line can be attributed to favorable demand conditions. Further, a strong momentum across semiconductor equipment, and telecom and networking contributed well.
Further, a solid performance delivered by the company across North America, Asia and other countries was a major upside.
However, the coronavirus-induced supply-chain constraints remained concerns. Further, weakening momentum across data centers, and industrial and medical was an overhang. Also, softness in the European region was a negative.
Shares of Advanced Energy have returned 40.7% over a year, underperforming the industry’s rally of 72%.
Nevertheless, the company is optimistic about its growing traction across enterprise computing customers. Further, prospects related to 5G remain key levers.
Additionally, positive contribution from Artesyn Embedded Power buyout remains a major positive.
All these factors are likely to help the stock rebound in the near term.
Top Line in Detail
Product revenues rose 8.3% year over year to $337.5 million (91% of total revenues) in the fourth quarter.
Services revenues improved 25.7% from the prior-year quarter to $33.5 million (9% of revenues).
Product Line in Detail
Semiconductor Equipment revenues grew 32.5% year over year to $165.8 million (44.7% of total revenues). The company witnessed heavy investments in foundry/logic, which acted as a boon. Also, hefty NAND memory investments contributed significantlyto the results. Apart from this, strong shipment of eVoS evaluation units was a positive. Further, rising RF design wins remained a tailwind.
Industrial & Medical revenues fell 3.1% year over year to $93.8 million (25.3% of revenues).Sluggishness in the demand for some critical care equipment and elective care applications remained an overhang.
Telecom & Networking revenues were $46.1 million (12.4% of revenues), up 19.9% from the prior-year quarter. Strong 5G investments remained a major positive.
Data Center Computing revenues were $65.3 million (17.6% of revenues), down 16.2% from the year-ago quarter. This was primarily attributed to a weak demand environment, owing to data center digestion among hyperscale customers. Further, a slowdown in IT spending remained worrisome.
Operating Results
In the fourth quarter, non-GAAP gross profit was 39.5%, which expanded 360 basis points (bps) from the year-ago quarter.
Non-GAAP operating expenses were $76.9 million, down 1.4% year over year. As a percentage of revenues, the figure contracted 240 bps from the year-ago quarter to 20.7% in the reported quarter.
Further, non-GAAP operating margin was 18.7%, expanding 590 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2020, cash, cash equivalents and marketable securities were $483.02 million compared with $431.6million as of Sep 30, 2020.
Long-term debt stood at $304.5 million at the end of the fourth quarter, down from $308.8million at the end of the third quarter.
During the fourth quarter, cash flow from operations was $67.1 million compared with $67.5 million in the third quarter.
Further, the company generated free cash flow of $56 million in the reported quarter.
1Q21 Guidance
For first-quarter 2021, Advanced Energy expects non-GAAP earnings between $1.10 and $1.40 per share. The Zacks Consensus Estimate is pegged at $1.28 per share.
Further, the company anticipates revenues of $335-$365 million. The Zacks Consensus Estimate for the same is projected at $367.3 million.
Zacks Rank & Stocks to Consider
Advanced Energy currently carries a Zacks Rank #3 (Hold).
Long-term earnings growth rates for GoDaddy, CrowdStrike and Garmin are currently pegged at 25%, 25% and 6.8%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Image: Bigstock
Advanced Energy (AEIS) Q4 Earnings & Revenues Beat, Rise Y/Y
Advanced Energy Industries, Inc. (AEIS - Free Report) reported fourth-quarter 2020 non-GAAP earnings of $1.49 per share, beating the Zacks Consensus Estimate by 9.6%. Further, the bottom line was within the management’s guidance of $1.10 to $1.50 per share.
The bottom line also improved 71.3% from the year-ago quarter but declined 10.2% sequentially.
Revenues of $370.97 million surpassed the Zacks Consensus Estimate of $365.03 million and were within management’s guidance of $340-$380 million. Moreover, the top line rose9.7% from the year-ago quarter but decreased 4.8% from the prior quarter.
The year-over-year improvement in the top line can be attributed to favorable demand conditions. Further, a strong momentum across semiconductor equipment, and telecom and networking contributed well.
Further, a solid performance delivered by the company across North America, Asia and other countries was a major upside.
However, the coronavirus-induced supply-chain constraints remained concerns. Further, weakening momentum across data centers, and industrial and medical was an overhang. Also, softness in the European region was a negative.
Shares of Advanced Energy have returned 40.7% over a year, underperforming the industry’s rally of 72%.
Nevertheless, the company is optimistic about its growing traction across enterprise computing customers. Further, prospects related to 5G remain key levers.
Additionally, positive contribution from Artesyn Embedded Power buyout remains a major positive.
All these factors are likely to help the stock rebound in the near term.
Top Line in Detail
Product revenues rose 8.3% year over year to $337.5 million (91% of total revenues) in the fourth quarter.
Services revenues improved 25.7% from the prior-year quarter to $33.5 million (9% of revenues).
Product Line in Detail
Semiconductor Equipment revenues grew 32.5% year over year to $165.8 million (44.7% of total revenues). The company witnessed heavy investments in foundry/logic, which acted as a boon. Also, hefty NAND memory investments contributed significantlyto the results. Apart from this, strong shipment of eVoS evaluation units was a positive. Further, rising RF design wins remained a tailwind.
Industrial & Medical revenues fell 3.1% year over year to $93.8 million (25.3% of revenues).Sluggishness in the demand for some critical care equipment and elective care applications remained an overhang.
Telecom & Networking revenues were $46.1 million (12.4% of revenues), up 19.9% from the prior-year quarter. Strong 5G investments remained a major positive.
Data Center Computing revenues were $65.3 million (17.6% of revenues), down 16.2% from the year-ago quarter. This was primarily attributed to a weak demand environment, owing to data center digestion among hyperscale customers. Further, a slowdown in IT spending remained worrisome.
Operating Results
In the fourth quarter, non-GAAP gross profit was 39.5%, which expanded 360 basis points (bps) from the year-ago quarter.
Non-GAAP operating expenses were $76.9 million, down 1.4% year over year. As a percentage of revenues, the figure contracted 240 bps from the year-ago quarter to 20.7% in the reported quarter.
Further, non-GAAP operating margin was 18.7%, expanding 590 bps from the prior-year quarter.
Balance Sheet & Cash Flow
As of Dec 31, 2020, cash, cash equivalents and marketable securities were $483.02 million compared with $431.6million as of Sep 30, 2020.
Long-term debt stood at $304.5 million at the end of the fourth quarter, down from $308.8million at the end of the third quarter.
During the fourth quarter, cash flow from operations was $67.1 million compared with $67.5 million in the third quarter.
Further, the company generated free cash flow of $56 million in the reported quarter.
1Q21 Guidance
For first-quarter 2021, Advanced Energy expects non-GAAP earnings between $1.10 and $1.40 per share. The Zacks Consensus Estimate is pegged at $1.28 per share.
Further, the company anticipates revenues of $335-$365 million. The Zacks Consensus Estimate for the same is projected at $367.3 million.
Zacks Rank & Stocks to Consider
Advanced Energy currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology sector are GoDaddy (GDDY - Free Report) , CrowdStrike (CRWD - Free Report) and Garmin (GRMN - Free Report) . All companies carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Long-term earnings growth rates for GoDaddy, CrowdStrike and Garmin are currently pegged at 25%, 25% and 6.8%, respectively.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>