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Camtek (CAMT) Q1 Earnings and Revenues Surpass Estimates
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Camtek (CAMT - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of 44 cents per share, which beat the Zacks Consensus Estimate by 2.33% and improved 33.3% on a year-over-year basis.
Total revenues of $77.2 million increased 35% year over year and surpassed the Zacks Consensus Estimate by 0.22%. The first-quarter top line was primarily driven by advanced packaging, which contributed 50% to revenues and compound semi, which accounted for 20%.
Quarter in Details
In the first quarter, Camtek posted non-GAAP gross profit of $40.2 million, up 38% year over year. Concurrently, non-GAAP gross margin expanded by 140 bps to 52%. The growth in gross margin can be attributed to a more favorable product mix sold during the reported quarter.
The company received orders of more than $150 million globally for various components like DRAM, component semi and CIS despite ongoing geopolitical tensions. Camtek sold 10 machines to new customers, thus expanding market share in the front-end and compound semi-segment.
Revenues were split globally, with the United States and Europe making up 21% of sales. Meanwhile, Asia contributed to 79% of sales.
However, since Asia accounted for the majority of sales, the impact of the ongoing COVID-19 pandemic on China that has resulted in a lockdown in Shanghai is quite evident in the reported quarterly results.
The semiconductor manufacturing chain has been disrupted due to the lockdown in Shanghai, which has led to a global semiconductor crisis. The company has been unable to meet rising demand with accurate supply and is grappling with a high backlog.
Rising inflation has escalated the input costs for production, consequently impacting the bottom-line growth. Total operating expenses increased by 7.1% year over year to $18 million, primarily due to rising research and development and selling, general and administrative expenses. Selling, general and administrative expenses, as a percentage of revenues, expanded by 50 bps, while research & development expenses, as a percentage of revenues, expanded by 40 bps.
Non-GAAP operating profit of $22.2 million increased 42% year over year, which resulted in a non-GAAP operating margin of 28.8%, reflecting an increase of 160 bps year over year.
Balance Sheet
Cash and cash equivalents, short-term and long-term deposits, as of Mar 31, 2022, were $428.3 million compared with $429.9 million as of Dec 31, 2021.
Inventory as of Mar 31, 2022, was $63.84 million, up by $ 5 million from the end of Dec 31, 2021. The company is increasing the inventory levels to meet the rising demand for certain key components in the semiconductor industry and improve the flexibility of the sales channel to counter the rising supply chain challenges.
Guidance
In the second quarter of 2022, Camtek expects revenues to be between $77 million and $ 80 million. However, earnings per share guidance has not been specified.
Zacks Rank & Other Stocks to Consider
Camtek currently carries a Zacks Rank #2 (Buy).
Camtek’s shares have tumbled 41.5% compared with the Zacks Computer and Technology sector’s decline of 28.3% in the year-to-date period.
Here are some other top-ranked stocks worth considering in the broader sector.
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Camtek (CAMT) Q1 Earnings and Revenues Surpass Estimates
Camtek (CAMT - Free Report) reported first-quarter fiscal 2022 non-GAAP earnings of 44 cents per share, which beat the Zacks Consensus Estimate by 2.33% and improved 33.3% on a year-over-year basis.
Total revenues of $77.2 million increased 35% year over year and surpassed the Zacks Consensus Estimate by 0.22%. The first-quarter top line was primarily driven by advanced packaging, which contributed 50% to revenues and compound semi, which accounted for 20%.
Quarter in Details
In the first quarter, Camtek posted non-GAAP gross profit of $40.2 million, up 38% year over year. Concurrently, non-GAAP gross margin expanded by 140 bps to 52%. The growth in gross margin can be attributed to a more favorable product mix sold during the reported quarter.
The company received orders of more than $150 million globally for various components like DRAM, component semi and CIS despite ongoing geopolitical tensions. Camtek sold 10 machines to new customers, thus expanding market share in the front-end and compound semi-segment.
Camtek Ltd. Price, Consensus and EPS Surprise
Camtek Ltd. price-consensus-eps-surprise-chart | Camtek Ltd. Quote
Revenues were split globally, with the United States and Europe making up 21% of sales. Meanwhile, Asia contributed to 79% of sales.
However, since Asia accounted for the majority of sales, the impact of the ongoing COVID-19 pandemic on China that has resulted in a lockdown in Shanghai is quite evident in the reported quarterly results.
The semiconductor manufacturing chain has been disrupted due to the lockdown in Shanghai, which has led to a global semiconductor crisis. The company has been unable to meet rising demand with accurate supply and is grappling with a high backlog.
Rising inflation has escalated the input costs for production, consequently impacting the bottom-line growth. Total operating expenses increased by 7.1% year over year to $18 million, primarily due to rising research and development and selling, general and administrative expenses. Selling, general and administrative expenses, as a percentage of revenues, expanded by 50 bps, while research & development expenses, as a percentage of revenues, expanded by 40 bps.
Non-GAAP operating profit of $22.2 million increased 42% year over year, which resulted in a non-GAAP operating margin of 28.8%, reflecting an increase of 160 bps year over year.
Balance Sheet
Cash and cash equivalents, short-term and long-term deposits, as of Mar 31, 2022, were $428.3 million compared with $429.9 million as of Dec 31, 2021.
Inventory as of Mar 31, 2022, was $63.84 million, up by $ 5 million from the end of Dec 31, 2021. The company is increasing the inventory levels to meet the rising demand for certain key components in the semiconductor industry and improve the flexibility of the sales channel to counter the rising supply chain challenges.
Guidance
In the second quarter of 2022, Camtek expects revenues to be between $77 million and $ 80 million. However, earnings per share guidance has not been specified.
Zacks Rank & Other Stocks to Consider
Camtek currently carries a Zacks Rank #2 (Buy).
Camtek’s shares have tumbled 41.5% compared with the Zacks Computer and Technology sector’s decline of 28.3% in the year-to-date period.
Here are some other top-ranked stocks worth considering in the broader sector.
Analog Devices (ADI - Free Report) currently carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
ADI shares have declined 13% in the year-to-date period. ADI is scheduled to report second-quarter 2022 results on May 18.
Cisco Systems (CSCO - Free Report) presently carries a Zacks Rank of 2.
Cisco shares have declined 23.8% in the year-to-date period. CSCO is slated to report third-quarter fiscal 2022 results on May 18.
Broadcom (AVGO - Free Report) carries a Zacks Rank of 2 at present.
Broadcom shares have declined 15.4% in the year-to-date period. AVGO is scheduled to report first-quarter fiscal 2022 results on Jun 2.