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Onto Innovation (ONTO) Q3 Earnings Beat, Revenues Fall Y/Y
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Onto Innovation Inc (ONTO - Free Report) reported third-quarter 2023 earnings of 96 cents per share, which beat the Zacks Consensus Estimate by 1.1%. The bottom line decreased 28.9% year over year.
Revenues of $207.2 million lagged the Zacks Consensus Estimate by 3.6%. The top line declined 18.5% year over year. The fall can be mainly due to the delayed shipment of two lithography systems to chiplet substrate manufacturers in the quarter under review. A decline in the advanced nodes segment’s revenues also acted as a headwind.
Specialty devices and advanced packaging revenues of $135 million increased 20% sequentially. Revenues from software and services grew 13% to $46 million. Revenues from advanced nodes market stood at $26 million in the quarter under review.
Sales from specialty devices and advanced packaging, and advanced node markets contributed 65% and 13% to revenues, respectively. Software and services accounted for 22% of the top line.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Non-GAAP operating expenses were $57.3 million, dipping 5.4% from $60.6 million in the prior-year quarter.
Non-GAAP gross profit fell to $106.9 million from $138.8 million in the year-earlier quarter. Non-GAAP gross profit margin contracted 300 basis points to 52%.
Non-GAAP operating income was $49.6 million compared with $78.3 million in the year-ago quarter. Non-GAAP operating margin was 24%, down from 31% in the previous-year quarter.
Balance Sheet
As of Sep 30, the company had $629.7 million in cash and cash equivalents with $135.8 million of total current liabilities compared with $609.6 million and $136.9 million, respectively, as of Jul 1, 2023. Accounts receivable was $209.5 million.
Q4 Guidance
Management expects revenues in the range of $200-$216 million. The Zacks Consensus Estimate is pegged at $215.1 million.
Non-GAAP earnings per share are projected to be between 90 cents and $1.10. The consensus mark is pegged at 95 cents.
Zacks Rank
Onto Innovation currently has a Zacks Rank #3 (Hold).
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have climbed 25.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS has remained flat in the past 60 days at $11.09. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have gained 52.5% in the past year.
The Zacks Consensus Estimate for Cadence 2023 EPS has improved 0.4% in the past 60 days to $5.11.
Cadence’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 4.1%. Shares of CDNS have jumped 53.7% in the past year.
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Onto Innovation (ONTO) Q3 Earnings Beat, Revenues Fall Y/Y
Onto Innovation Inc (ONTO - Free Report) reported third-quarter 2023 earnings of 96 cents per share, which beat the Zacks Consensus Estimate by 1.1%. The bottom line decreased 28.9% year over year.
Revenues of $207.2 million lagged the Zacks Consensus Estimate by 3.6%. The top line declined 18.5% year over year. The fall can be mainly due to the delayed shipment of two lithography systems to chiplet substrate manufacturers in the quarter under review. A decline in the advanced nodes segment’s revenues also acted as a headwind.
Specialty devices and advanced packaging revenues of $135 million increased 20% sequentially. Revenues from software and services grew 13% to $46 million. Revenues from advanced nodes market stood at $26 million in the quarter under review.
Sales from specialty devices and advanced packaging, and advanced node markets contributed 65% and 13% to revenues, respectively. Software and services accounted for 22% of the top line.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote
Margin Details
Non-GAAP operating expenses were $57.3 million, dipping 5.4% from $60.6 million in the prior-year quarter.
Non-GAAP gross profit fell to $106.9 million from $138.8 million in the year-earlier quarter. Non-GAAP gross profit margin contracted 300 basis points to 52%.
Non-GAAP operating income was $49.6 million compared with $78.3 million in the year-ago quarter. Non-GAAP operating margin was 24%, down from 31% in the previous-year quarter.
Balance Sheet
As of Sep 30, the company had $629.7 million in cash and cash equivalents with $135.8 million of total current liabilities compared with $609.6 million and $136.9 million, respectively, as of Jul 1, 2023. Accounts receivable was $209.5 million.
Q4 Guidance
Management expects revenues in the range of $200-$216 million. The Zacks Consensus Estimate is pegged at $215.1 million.
Non-GAAP earnings per share are projected to be between 90 cents and $1.10. The consensus mark is pegged at 95 cents.
Zacks Rank
Onto Innovation currently has a Zacks Rank #3 (Hold).
Stocks to Consider
Some better-ranked stocks worth consideration in the broader technology space are Asure Software (ASUR - Free Report) , Synopsys (SNPS - Free Report) and Cadence Design Systems (CDNS - Free Report) . While Asure Software flaunts a Zacks Rank #1 (Strong Buy), Synopsys and Cadence carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Asure Software’s 2023 EPS has increased 5.9% in the past 60 days to 54 cents.
Asure Software’s earnings beat the Zacks Consensus Estimate in each of the last four quarters, the average surprise being 676.4%. Shares of ASUR have climbed 25.5% in the past year.
The Zacks Consensus Estimate for Synopsys’ fiscal 2023 EPS has remained flat in the past 60 days at $11.09. SNPS’ long-term earnings growth rate is 16.7%. Shares of SNPS have gained 52.5% in the past year.
The Zacks Consensus Estimate for Cadence 2023 EPS has improved 0.4% in the past 60 days to $5.11.
Cadence’s earnings outpaced the Zacks Consensus Estimate in each of the last four quarters, the average earnings surprise being 4.1%. Shares of CDNS have jumped 53.7% in the past year.