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Onto (ONTO) Q4 Earnings Top Estimates, Revenues Rise Y/Y
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Onto Innovation Inc (ONTO - Free Report) reported fourth-quarter 2022 earnings of $1.57 per share, up 28% year over year and beating the Zacks Consensus Estimate by 17.2%.
Revenues of $253 million missed the Zacks Consensus Estimate by 0.7%. The top line increased 12% year over year. The upside can be attributed to higher demand from several end markets, particularly advanced nodes and the Inspection market.
The company’s Atlas Optical Metrology has gained traction in the quarter under review, owing to increased adoption of gate-all-around transistor structures and 3D-NAND.
Revenues from the advanced nodes market were up 16% year over year, while revenues from specialty devices and advanced packaging increased 15% year over year. Software and services revenue was down 1% year over year. Sales from specialty devices and advanced packaging contributed 49% to revenues. Advanced node markets contributed 34% and software and services accounted for 17%.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Total operating expenses increased to $76 million, rising 2.8% from $73.9 million in the prior-year quarter.
Non-GAAP gross profit rose to $137.3 million from $123.9 million. Non-GAAP gross profit margin remained decreased 100 bps year over year to 54%. Non-GAAP operating income was $76 million compared with $69 million in the year-ago quarter. Non-GAAP operating margin was 30%, down from 31% reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2022, the company had $547 million in cash and cash equivalents, with $161 million of total current liabilities compared with $553 million and $169.6 million as of Oct 1, 2022. Accounts receivable stood at $241.4 million.
Q1 Guidance
The company expects revenues of $200 million (+/- 3%). The Zacks Consensus Estimate for revenues is pegged at $232.7 million.
Non-GAAP earnings per share are estimated to be 80-95 cents. The Zacks Consensus Estimate for earnings is pegged at $1.14 per share.
Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.38 per share, rising 0.2 in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have increased 4.3% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 32.3% in the past year.
The Zacks Consensus Estimate for Bandwidth 2022 earnings is pegged at 37 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 57.7% in the past year.
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Onto (ONTO) Q4 Earnings Top Estimates, Revenues Rise Y/Y
Onto Innovation Inc (ONTO - Free Report) reported fourth-quarter 2022 earnings of $1.57 per share, up 28% year over year and beating the Zacks Consensus Estimate by 17.2%.
Revenues of $253 million missed the Zacks Consensus Estimate by 0.7%. The top line increased 12% year over year. The upside can be attributed to higher demand from several end markets, particularly advanced nodes and the Inspection market.
The company’s Atlas Optical Metrology has gained traction in the quarter under review, owing to increased adoption of gate-all-around transistor structures and 3D-NAND.
Revenues from the advanced nodes market were up 16% year over year, while revenues from specialty devices and advanced packaging increased 15% year over year. Software and services revenue was down 1% year over year. Sales from specialty devices and advanced packaging contributed 49% to revenues. Advanced node markets contributed 34% and software and services accounted for 17%.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote
Margin Details
Total operating expenses increased to $76 million, rising 2.8% from $73.9 million in the prior-year quarter.
Non-GAAP gross profit rose to $137.3 million from $123.9 million. Non-GAAP gross profit margin remained decreased 100 bps year over year to 54%. Non-GAAP operating income was $76 million compared with $69 million in the year-ago quarter. Non-GAAP operating margin was 30%, down from 31% reported in the prior-year quarter.
Balance Sheet
As of Dec 31, 2022, the company had $547 million in cash and cash equivalents, with $161 million of total current liabilities compared with $553 million and $169.6 million as of Oct 1, 2022. Accounts receivable stood at $241.4 million.
Q1 Guidance
The company expects revenues of $200 million (+/- 3%). The Zacks Consensus Estimate for revenues is pegged at $232.7 million.
Non-GAAP earnings per share are estimated to be 80-95 cents. The Zacks Consensus Estimate for earnings is pegged at $1.14 per share.
Zacks Rank & Stocks to Consider
Onto Innovation currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader technology space are Arista Networks (ANET - Free Report) , Jabil (JBL - Free Report) and Bandwidth (BAND - Free Report) . Jabil sports a Zacks Rank #1 (Strong Buy), while Arista Networks and Bandwidth carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Arista Networks 2022 earnings is pegged at $4.38 per share, rising 0.2 in the past 60 days. The long-term earnings growth rate is anticipated to be 17.5%.
Arista Networks’ earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 12.7%. Shares of ANET have increased 4.3% in the past year.
The Zacks Consensus Estimate for Jabil’s 2023 earnings is pegged at $8.37 per share, rising 2.3% in the past 60 days. The long-term earnings growth rate is anticipated to be 12%.
Jabil’s earnings beat the Zacks Consensus Estimate in all the last four quarters, the average being 8.8%. Shares of JBL have increased 32.3% in the past year.
The Zacks Consensus Estimate for Bandwidth 2022 earnings is pegged at 37 cents per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 25%.
BAND's earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 301.8%. Shares of the company have declined 57.7% in the past year.