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COHU Gearing Up to Report Q1 Earnings: What's in the Cards?

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Cohu, Inc. (COHU - Free Report) is set to report first-quarter 2021 results on Apr 29.

The company expects first-quarter 2021 sales to be between $212 million and $232 million. The Zacks Consensus Estimate for first-quarter revenues is pegged at $223.5 million, indicating growth of 60.8% from the year-ago quarter.

The Zacks Consensus Estimate for first-quarter earnings has remained steady at 79 cents per share over the past 30 days.

Cohu, Inc. Price and EPS Surprise

Cohu, Inc. Price and EPS Surprise

Cohu, Inc. price-eps-surprise | Cohu, Inc. Quote

Factors to Note

Continued demand for equipment used in testing mobility semiconductor applications, data centers and personal computers is expected to reflect on Cohu’s first-quarter 2021 results, driven by the accelerated ramp up of RedDragon RF module for testing 5G, Wi-Fi 6 and UltraWideband devices, and new customers for Neon inspection platform.

Cohu is a global leader in back-end semiconductor equipment and services, delivering leading-edge solutions for the manufacturing of semiconductors and printed circuit boards.

Improving demand from semiconductor, automotive and industrial customers and orders for PCB test equipment bodes well for the company’s top-line growth in the to-be reported quarter.

Moreover, increasing demand for its semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors and thermal sub-systems in the wireless mobility market are expected to remain key growth drivers.

Moreover, shortage in auto chip supply is expected to increase capacity that bodes well for Cohu, which has a strong presence in the EV and ADAS market segments.

Key Development in Q1

On Mar 23, the company announced prepaying $100 million of its term loan B (TLB) facility. As a result of this prepayment, Cohu reduced the outstanding principal of its TLB to approximately $206 million.

What Our Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Cohu 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 companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat in their upcoming releases:

Atlassian Corporation PLC (TEAM - Free Report) has an Earnings ESP of +24.48% and is Zacks #2 Ranked. You can see the complete list of today’s Zacks #1 Rank stocks here.

CDW Corporation (CDW - Free Report) has an Earnings ESP of +0.51% and a Zacks Rank #2.

Etsy, Inc. (ETSY - Free Report) has an Earnings ESP of +1.19% and a Zacks Rank #3.

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