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Can Healthy Revenue Growth Aid Axcelis' (ACLS) Q3 Earnings?

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Axcelis Technologies, Inc. (ACLS - Free Report) is scheduled to report third-quarter 2022 results on Nov 2, after the closing bell. In the last reported quarter, the company delivered an earnings surprise of 28.2%. It pulled off a trailing four-quarter earnings surprise of 25%, on average.

The Beverly, MA-based company is expected to have recorded year-over-year higher revenues on the back of healthy demand trends.

Factors at Play

During the to-be-reported quarter, Axcelis increased the production capacity level at its new Asia Operations Center in Pyeongtaek-Si, Gyeonggi-Do, Korea. The higher production is likely to have enabled the company to better serve the Korean customer base while expanding its footprint across Asia. This is likely to be reflected in the upcoming results.

In the third quarter, Axcelis is likely to have benefited from multiple shipments of its Purion H200 Si 200mm and SiC Power Series 150mm high current implanters to leading power device chipmakers. The products, primarily used in high volume production of power devices, are likely to have generated incremental revenues in the third quarter supporting automotive device markets.

For the September quarter, the Zacks Consensus Estimate for revenues is pegged at $224 million, which indicates growth from the year-ago quarter’s reported figure of $177 million. Management expects third-quarter revenues within $220-$228 million. The consensus estimate for adjusted earnings per share is pegged at $1.13, which suggests an increase from 81 cents recorded in the prior-year quarter driven by top-line growth.

Earnings Whispers

Our proven model does not predict an earnings beat for Axcelis in the third quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. This is not the case here.

Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate and the Zacks Consensus Estimate, is 0.00%, with both pegged at $1.13. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Axcelis Technologies, Inc. Price and EPS Surprise

Axcelis Technologies, Inc. Price and EPS Surprise

Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote

Zacks Rank: Axcelis carries a Zacks Rank #4 (Sell).

Stocks to Consider

Here are some companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:

The AES Corporation (AES - Free Report) is set to release quarterly numbers on Nov 3. It has an Earnings ESP of +3.42% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Earnings ESP for United States Cellular Corporation (USM - Free Report) is +47.46% and it sports a Zacks Rank of 1. The company is set to report quarterly numbers on Nov 3.

The Earnings ESP for Cognex Corporation (CGNX - Free Report) is +4.84% and it carries a Zacks Rank of 3. The company is scheduled to report quarterly numbers on Nov 3.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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