We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Advanced Energy (AEIS) Q2 Earnings Beat, Revenues Fall Y/Y
Read MoreHide Full Article
Advanced Energy Industries, Inc. (AEIS - Free Report) delivered second-quarter 2023 non-GAAP earnings of $1.11 per share, beating the Zacks Consensus Estimate by 3.7%. The bottom line declined 22.9% on a year-over-year basis.
Revenues of $415.5 million surpassed the Zacks Consensus Estimate of $414 million. The top line decreased 5.8% year over year.
Softness across Semiconductor Equipment and Data Center Computing markets led to a year-over-year decline in the top line.
Nevertheless, strong momentum across the Industrial and Medical and Telecom and Networking end markets was a positive.
Advanced Energy Industries, Inc. Price, Consensus and EPS Surprise
Semiconductor Equipment: Revenues generated from the market fell 24.3% year over year to $173.2 million (41.7% of the total revenues). The figure missed the Zacks Consensus Estimate of $192 million.
Nevertheless, the growing requirement for high-voltage equipment in implant applications was a positive.
Industrial & Medical: Revenues from the market grew 21.6% year over year to $127.6 million (30.7% of the total revenues) in the reported quarter. The figure topped the Zacks Consensus Estimate of $109 million. Top-line growth in the market was driven by growing design wins in industrial and medical applications.
Data Center Computing: Revenues from the market were $59.1 million (14.2% of the total revenues), down 14.6% from the year-ago quarter’s level. The figure missed the Zacks Consensus Estimate of $70 million. Weakness among enterprise customers was a concern.
Telecom & Networking: Revenues generated from the market were $55.7 million (13.4% of the total revenues), up 46.3% from the prior-year quarter’s level. The figure beat the Zacks Consensus Estimate of $41.2 million. This was driven by improved component availability.
Operating Results
In the second quarter, GAAP gross margin was 35.4%, which contracted 140 basis points (bps) year over year. The non-GAAP gross margin was 35.6%, down 150 bps from the year-ago quarter’s level.
Non-GAAP operating expenses were $98.5 million, up 4.6% year over year. As a percentage of revenues, the figure expanded 230 bps year over year to 23.7% in the reported quarter.
The non-GAAP operating margin was 11.9%, contracting 390 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and cash equivalents were $455.2 million compared with $461.7 million as of Mar 31, 2023.
Total debt was $363.5 million at the end of second quarter, down from $368.4 million at the first quarter’s end.
For the second quarter, cash flow from operations was $23.6 million, lower than $31.9 million in the first quarter.
Advanced Energy made dividend payments of $3.8 million in the reported quarter.
Guidance
For third-quarter 2023, Advanced Energy expects non-GAAP earnings of $1.13 per share (+/- 20 cents). The Zacks Consensus Estimate is pegged at $1.24 per share.
Advanced Energy anticipates revenues of $415 million (+/- $15 million). The Zacks Consensus Estimate for the same is pegged at $434.03 million.
Zacks Rank & Stocks to Consider
Currently, Advanced Energy has a Zacks Rank #3 (Hold).
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, implying growth of 6.83% from the year-ago quarter’s reported figure. CACI shares have gained 18.9% in the year-to-date period.
BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pegged at 41 cents per share. BILL shares have gained 3% in the year-to-date period.
NetEase is scheduled to report second-quarter 2023 results on Aug 24. The Zacks Consensus Estimate for NTES’ earnings is pegged at $1.33 per share, suggesting an increase of 9.02% from the prior-year quarter’s reported figure. NTES shares have gained 49% in the year-to-date period.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Advanced Energy (AEIS) Q2 Earnings Beat, Revenues Fall Y/Y
Advanced Energy Industries, Inc. (AEIS - Free Report) delivered second-quarter 2023 non-GAAP earnings of $1.11 per share, beating the Zacks Consensus Estimate by 3.7%. The bottom line declined 22.9% on a year-over-year basis.
Revenues of $415.5 million surpassed the Zacks Consensus Estimate of $414 million. The top line decreased 5.8% year over year.
Softness across Semiconductor Equipment and Data Center Computing markets led to a year-over-year decline in the top line.
Nevertheless, strong momentum across the Industrial and Medical and Telecom and Networking end markets was a positive.
Advanced Energy Industries, Inc. Price, Consensus and EPS Surprise
Advanced Energy Industries, Inc. price-consensus-eps-surprise-chart | Advanced Energy Industries, Inc. Quote
End Market in Detail
Semiconductor Equipment: Revenues generated from the market fell 24.3% year over year to $173.2 million (41.7% of the total revenues). The figure missed the Zacks Consensus Estimate of $192 million.
Nevertheless, the growing requirement for high-voltage equipment in implant applications was a positive.
Industrial & Medical: Revenues from the market grew 21.6% year over year to $127.6 million (30.7% of the total revenues) in the reported quarter. The figure topped the Zacks Consensus Estimate of $109 million. Top-line growth in the market was driven by growing design wins in industrial and medical applications.
Data Center Computing: Revenues from the market were $59.1 million (14.2% of the total revenues), down 14.6% from the year-ago quarter’s level. The figure missed the Zacks Consensus Estimate of $70 million. Weakness among enterprise customers was a concern.
Telecom & Networking: Revenues generated from the market were $55.7 million (13.4% of the total revenues), up 46.3% from the prior-year quarter’s level. The figure beat the Zacks Consensus Estimate of $41.2 million. This was driven by improved component availability.
Operating Results
In the second quarter, GAAP gross margin was 35.4%, which contracted 140 basis points (bps) year over year. The non-GAAP gross margin was 35.6%, down 150 bps from the year-ago quarter’s level.
Non-GAAP operating expenses were $98.5 million, up 4.6% year over year. As a percentage of revenues, the figure expanded 230 bps year over year to 23.7% in the reported quarter.
The non-GAAP operating margin was 11.9%, contracting 390 bps from the prior-year quarter’s level.
Balance Sheet & Cash Flow
As of Jun 30, 2023, cash and cash equivalents were $455.2 million compared with $461.7 million as of Mar 31, 2023.
Total debt was $363.5 million at the end of second quarter, down from $368.4 million at the first quarter’s end.
For the second quarter, cash flow from operations was $23.6 million, lower than $31.9 million in the first quarter.
Advanced Energy made dividend payments of $3.8 million in the reported quarter.
Guidance
For third-quarter 2023, Advanced Energy expects non-GAAP earnings of $1.13 per share (+/- 20 cents). The Zacks Consensus Estimate is pegged at $1.24 per share.
Advanced Energy anticipates revenues of $415 million (+/- $15 million). The Zacks Consensus Estimate for the same is pegged at $434.03 million.
Zacks Rank & Stocks to Consider
Currently, Advanced Energy has a Zacks Rank #3 (Hold).
Investors interested in the broader technology sector can consider some better-ranked stocks like CACI International (CACI - Free Report) and BILL Holdings, Inc. (BILL - Free Report) , carrying a Zacks Rank #2 (Buy), and NetEase (NTES - Free Report) , sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
CACI is set to report its fourth-quarter fiscal 2023 results on Aug 9. The Zacks Consensus Estimate for CACI’s earnings is pegged at $4.85 per share, implying growth of 6.83% from the year-ago quarter’s reported figure. CACI shares have gained 18.9% in the year-to-date period.
BILL Holdings is set to report its fourth-quarter fiscal 2023 results on Aug 17. The Zacks Consensus Estimate for BILL’s earnings is pegged at 41 cents per share. BILL shares have gained 3% in the year-to-date period.
NetEase is scheduled to report second-quarter 2023 results on Aug 24. The Zacks Consensus Estimate for NTES’ earnings is pegged at $1.33 per share, suggesting an increase of 9.02% from the prior-year quarter’s reported figure. NTES shares have gained 49% in the year-to-date period.