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Onto Innovation's (ONTO) DragonFly G3 System Gains Momentum
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Onto Innovation (ONTO - Free Report) recently announced that it finalized over $100 million in orders for Dragonfly G3 inspection system reflecting strong consumer demand.
ONTO’s Dragonfly G3 system is of vital importance for advanced packaging for the fast-growing AI device market. Most of the orders are from logic and memory manufacturers who will be utilizing Dragonfly G3 system for heterogeneous integrated (HI) packages. These HI packages integrate a graphics processor (GPU) and various high bandwidth memory devices to form AI GPU in one package, noted ONTO.
The deliveries are scheduled in the first quarter of 2024. The company also noted that it has secured several new orders extending into the second half of 2024.
Management noted that demand for AI GPUs is increasing at both corporate enterprises and hyperscalers with specific parallel computing platforms to meet the ever-increasing demand for massive language model applications. ONTO cited a report from International Data Corporation and JP Morgan, which expects AI GPU market to grow at an annual average rate of 40% over the next four years.
Dragonfly G3 platform combines 2D and 3D technology that helps in detecting defects and measuring features for front-end and packaging. It has applications in various fields such as reconstituted wafers, gel and waffle pack inspection, and large die, multi-chip packages etc.
Onto Innovation specializes in designing, manufacturing and marketing of process control systems for 2D and 3D macro inspection, optical critical dimension metrology and wafer inspection.
Recently, ONTO reported second-quarter 2023 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 4.8%. The bottom line decreased 38.3% year over year.
Revenues of $190.7 million also lagged the Zacks Consensus Estimate by 6.1%. The top line declined 25.6% year over year. The downtick can be mainly attributed to delayed shipments of three lithography system in the quarter under review.
Weakness in demand from advanced nodes market was another headwind. Revenues from this market were down 43% in the second quarter. Macroeconomic turbulence, stiff competition and rising inflationary pressure continue to remain major headwinds.
The company witnessed relatively healthy demand from specialty customers and advanced packaging which provided some cushioning to the performance. Higher uptake of its solutions by companies engaged primarily in the fast-growing power device markets bodes well. Increasing customer adoption of Dragonfly G3 process control system and Iris films metrology system are tailwinds.
Onto Innovation currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Badger Meter’s 2023 earnings has risen 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat estimates in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 75.1% in the past year.
The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings surpassed estimates in the last four quarters, the average beat being 15.5%. Shares of CRM have grown 32.6% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings has improved 6.6% in the past 60 days to $1.46 per share. PEGA’s earnings has an average surprise of 166.2% in the trailing four quarters. Shares of PEGA have jumped 33.1% in the past year.
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Onto Innovation's (ONTO) DragonFly G3 System Gains Momentum
Onto Innovation (ONTO - Free Report) recently announced that it finalized over $100 million in orders for Dragonfly G3 inspection system reflecting strong consumer demand.
ONTO’s Dragonfly G3 system is of vital importance for advanced packaging for the fast-growing AI device market. Most of the orders are from logic and memory manufacturers who will be utilizing Dragonfly G3 system for heterogeneous integrated (HI) packages. These HI packages integrate a graphics processor (GPU) and various high bandwidth memory devices to form AI GPU in one package, noted ONTO.
The deliveries are scheduled in the first quarter of 2024. The company also noted that it has secured several new orders extending into the second half of 2024.
Management noted that demand for AI GPUs is increasing at both corporate enterprises and hyperscalers with specific parallel computing platforms to meet the ever-increasing demand for massive language model applications. ONTO cited a report from International Data Corporation and JP Morgan, which expects AI GPU market to grow at an annual average rate of 40% over the next four years.
Onto Innovation Inc. Price and Consensus
Onto Innovation Inc. price-consensus-chart | Onto Innovation Inc. Quote
Dragonfly G3 platform combines 2D and 3D technology that helps in detecting defects and measuring features for front-end and packaging. It has applications in various fields such as reconstituted wafers, gel and waffle pack inspection, and large die, multi-chip packages etc.
Onto Innovation specializes in designing, manufacturing and marketing of process control systems for 2D and 3D macro inspection, optical critical dimension metrology and wafer inspection.
Recently, ONTO reported second-quarter 2023 earnings of 79 cents per share that missed the Zacks Consensus Estimate by 4.8%. The bottom line decreased 38.3% year over year.
Revenues of $190.7 million also lagged the Zacks Consensus Estimate by 6.1%. The top line declined 25.6% year over year. The downtick can be mainly attributed to delayed shipments of three lithography system in the quarter under review.
Weakness in demand from advanced nodes market was another headwind. Revenues from this market were down 43% in the second quarter. Macroeconomic turbulence, stiff competition and rising inflationary pressure continue to remain major headwinds.
The company witnessed relatively healthy demand from specialty customers and advanced packaging which provided some cushioning to the performance. Higher uptake of its solutions by companies engaged primarily in the fast-growing power device markets bodes well. Increasing customer adoption of Dragonfly G3 process control system and Iris films metrology system are tailwinds.
Onto Innovation currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Badger Meter (BMI - Free Report) , Salesforce (CRM - Free Report) and Pegasystems (PEGA - Free Report) . each Badger Meter currently sports a Zacks Rank #1 (Strong Buy) while Salesforce and Pegasystems 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 Badger Meter’s 2023 earnings has risen 6.3% in the past 60 days to $2.86 per share. BMI’s earnings beat estimates in the last four quarters, the average surprise being 6.7%. Shares of BMI have surged 75.1% in the past year.
The Zacks Consensus Estimate for Salesforce’s fiscal 2024 earnings is pegged at $7.44 per share, unchanged in the past 60 days. The long-term earnings growth rate is anticipated to be 19.3%.
CRM’s earnings surpassed estimates in the last four quarters, the average beat being 15.5%. Shares of CRM have grown 32.6% in the past year.
The Zacks Consensus Estimate for Pegasystems’ 2023 earnings has improved 6.6% in the past 60 days to $1.46 per share. PEGA’s earnings has an average surprise of 166.2% in the trailing four quarters. Shares of PEGA have jumped 33.1% in the past year.