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What's in Store for Kulicke and Soffa's (KLIC) Q3 Earnings?

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Kulicke and Soffa (KLIC - Free Report) is slated to release third-quarter fiscal 2022 results on Aug 4.

The company now expects revenues of $365 million (+/- $20 million) and earnings to be $1.53 (plus or minus 10%) per share.

The Zacks Consensus Estimate for earnings has not changed over the past 30 days to $1.55 per share, suggesting a decline of 17.11% year over year.

The consensus mark for the top line currently stands at $365 million, indicating a slump of 13.98% from the year-ago quarter.

Kulicke and Soffa’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.05%.

Factors to Note

Kulicke and Soffa’s fiscal third-quarter performance is likely to have benefited from the company’s aggressive expansion plans and ramped up production within the advanced packaging, automotive, and advanced display portfolio to meet rising industry demand.

KLIC’s third-quarter performance is likely to have gained from the rise of certain global megatrends such as the transition to EV. Automakers and suppliers globally have been investing extensively in manufacturing e-mobility vehicles. This has led to rising demand for KLIC’s automotive semiconductor applications utilized in EV battery manufacturing, which in turn might have favored KLIC’s performance in the to-be-reported quarter.

The company has been aggressively building its next-generation laser-based battery assembly and wedge-bonder battery solutions. This is expected to have attracted a wide variety of customers in the to-be-reported quarter.

The company is expected to have benefited from its recent partnership with PDF Solutions (PDFS - Free Report) in the to-be-reported quarter.

KLIC partnered with PDF Solutions to create a new analytic platform that leverages comprehensive real-time data available within KLIC’s assembly system with AI and machine learning capability. This is likely to have aided customers produce semiconductors in high volume efficiently. This is expected to help in subduing the effects of the global supply chain constraints.

Due to its current operational strategy, the company may have expanded its market share and won more customers in the third quarter, courtesy of emerging industrial applications, such as battery backup and assembly.

However, increased expenses due to ongoing global supply chain challenges are likely to have weighed on the fiscal third-quarter gross margin.

What Our Model Indicates

Per the Zacks model, 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. But that’s not the case here.

Kulicke and Soffa has an Earnings ESP of -0.65% 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 worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Axcelis Technologies (ACLS - Free Report) has an Earnings ESP of +2.44% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

Axcelis’ shares have fallen5.8% in the year-to-date period compared with the Zacks Electronics - Manufacturing Machinery industry’s decline of 24.2%.

Ballard Power Systems (BLDP - Free Report) has an Earnings ESP of +2.04% and a Zacks Rank #3.

Ballard’s shares have fallen 37.8% in the year-to-date period compared with the Zacks Electronics - Miscellaneous Components industry’s decline of 18.1%.