We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
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.
Onto Innovation's Q1 Earnings Beat on Solid Y/Y Top-Line Improvement
Read MoreHide Full Article
Onto Innovation Inc. (ONTO - Free Report) reported first-quarter 2025 earnings per share of $1.51, which beat the Zacks Consensus Estimate by 2.7%. The bottom line compared favorably with the prior-year quarter's $1.18.
Quarterly revenues of $267 million beat the Zacks Consensus Estimate by 0.6% and increased 16.5% year over year. This marks the company’s seventh straight quarter of top-line growth, driven by expansions in advanced nodes and packaging for AI compute engines and cloud enterprise servers.
Specialty devices and advanced packaging revenues (48% of total revenues) of $129 million tanked 24% sequentially. The contraction was due to tough comparisons and evolving customer requirements in AI packaging and 2.5D applications.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Revenues from the Advanced nodes (35%) market skyrocketed 96% quarter over quarter to $93 million, driven by strength across leading-edge DRAM, NAND memory and gate-all-around (GAA) transistors.
Revenues from Software and services (17%) fell 5% sequentially to $44 million.
The Iris film metrology platform continued its momentum, with revenues increasing more than 25% quarter over quarter, fueled by new customer wins. Iris remains on track to achieve record full-year revenues. Also, Onto shipped multiple 3D bump metrology systems during the quarter, with more shipments planned in the second quarter to an expanding list of customers
Management highlighted the negative impact of the Trump administration's tariffs on Onto Innovation due to the U.S.-based manufacturing of its products, affecting both incoming costs and export costs. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Margin Details
Non-GAAP operating expenses totaled $70.4 million, up 13.9% year over year, slightly under the midpoint of the projected $69–$72 million guidance.
Non-GAAP gross profit rose to $146.9 million from $119.1 million in the year-earlier quarter. Non-GAAP gross profit margin expanded to 55% from 52%.
Non-GAAP operating income was $76.5 million compared with $57.3 million in the year-ago quarter. Non-GAAP operating margin was 29%, up from 25% in the previous-year quarter.
Balance Sheet
As of March 29, 2025, the company had $850.6 million in cash, cash equivalents and marketable securities with $174.5 million of total current liabilities compared with $852.3 million and $170 million, respectively, as of Dec. 28, 2024.
Accounts receivable were $291.6 million.
As of March 29, 2025, Onto generated a record $92 million in cash from operations, representing 35% of revenues.
Q2 2025 Guidance
Management expects revenues in the range of $240-$260 million. The Zacks Consensus Estimate is pegged at $264.6 million.
Non-GAAP earnings per share are projected to be between $1.21 and $1.35. We expect the metric to be $1.48.
GAAP earnings per share are expected to range from 99 cents to $1.13.
Advanced nodes revenues are expected to decline moderately in the second quarter and specialty devices and advanced packaging markets are projected to decrease slightly, with growth resuming in the fourth quarter after a pause in the third quarter.
ONTO’s Zacks Rank
Onto Innovation currently has a Zacks Rank #4 (Sell).
Badger Meter, Inc. (BMI - Free Report) reported EPS of $1.30 for first-quarter 2025, which beat the Zacks Consensus Estimate by 20.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 99 cents.
In the past year, shares of BMI have gained 18.8%.
Cadence Design Systems (CDNS - Free Report) reported first-quarter 2025 non-GAAP EPS of $1.57, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 34.2% year over year, exceeding management’s guided range of $1.46-$1.52.
Shares of Cadence have gained 9.6% in the past year.
Woodward, Inc. (WWD - Free Report) reported second-quarter fiscal 2025 adjusted net EPS of $1.69, which increased 4.3% year over year. The figure beat the Zacks Consensus Estimate by 17.4%.
In the past six months, shares of WWD have gained 13.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Onto Innovation's Q1 Earnings Beat on Solid Y/Y Top-Line Improvement
Onto Innovation Inc. (ONTO - Free Report) reported first-quarter 2025 earnings per share of $1.51, which beat the Zacks Consensus Estimate by 2.7%. The bottom line compared favorably with the prior-year quarter's $1.18.
Quarterly revenues of $267 million beat the Zacks Consensus Estimate by 0.6% and increased 16.5% year over year. This marks the company’s seventh straight quarter of top-line growth, driven by expansions in advanced nodes and packaging for AI compute engines and cloud enterprise servers.
Specialty devices and advanced packaging revenues (48% of total revenues) of $129 million tanked 24% sequentially. The contraction was due to tough comparisons and evolving customer requirements in AI packaging and 2.5D applications.
Onto Innovation Inc. Price, Consensus and EPS Surprise
Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote
Revenues from the Advanced nodes (35%) market skyrocketed 96% quarter over quarter to $93 million, driven by strength across leading-edge DRAM, NAND memory and gate-all-around (GAA) transistors.
Revenues from Software and services (17%) fell 5% sequentially to $44 million.
The Iris film metrology platform continued its momentum, with revenues increasing more than 25% quarter over quarter, fueled by new customer wins. Iris remains on track to achieve record full-year revenues. Also, Onto shipped multiple 3D bump metrology systems during the quarter, with more shipments planned in the second quarter to an expanding list of customers
Management highlighted the negative impact of the Trump administration's tariffs on Onto Innovation due to the U.S.-based manufacturing of its products, affecting both incoming costs and export costs. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
Margin Details
Non-GAAP operating expenses totaled $70.4 million, up 13.9% year over year, slightly under the midpoint of the projected $69–$72 million guidance.
Non-GAAP gross profit rose to $146.9 million from $119.1 million in the year-earlier quarter. Non-GAAP gross profit margin expanded to 55% from 52%.
Non-GAAP operating income was $76.5 million compared with $57.3 million in the year-ago quarter. Non-GAAP operating margin was 29%, up from 25% in the previous-year quarter.
Balance Sheet
As of March 29, 2025, the company had $850.6 million in cash, cash equivalents and marketable securities with $174.5 million of total current liabilities compared with $852.3 million and $170 million, respectively, as of Dec. 28, 2024.
Accounts receivable were $291.6 million.
As of March 29, 2025, Onto generated a record $92 million in cash from operations, representing 35% of revenues.
Q2 2025 Guidance
Management expects revenues in the range of $240-$260 million. The Zacks Consensus Estimate is pegged at $264.6 million.
Non-GAAP earnings per share are projected to be between $1.21 and $1.35. We expect the metric to be $1.48.
GAAP earnings per share are expected to range from 99 cents to $1.13.
Advanced nodes revenues are expected to decline moderately in the second quarter and specialty devices and advanced packaging markets are projected to decrease slightly, with growth resuming in the fourth quarter after a pause in the third quarter.
ONTO’s Zacks Rank
Onto Innovation currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Performance of Other Companies
Badger Meter, Inc. (BMI - Free Report) reported EPS of $1.30 for first-quarter 2025, which beat the Zacks Consensus Estimate by 20.4%. Also, the bottom line compared favorably with the year-ago quarter’s EPS of 99 cents.
In the past year, shares of BMI have gained 18.8%.
Cadence Design Systems (CDNS - Free Report) reported first-quarter 2025 non-GAAP EPS of $1.57, which beat the Zacks Consensus Estimate by 5.4%. The bottom line increased 34.2% year over year, exceeding management’s guided range of $1.46-$1.52.
Shares of Cadence have gained 9.6% in the past year.
Woodward, Inc. (WWD - Free Report) reported second-quarter fiscal 2025 adjusted net EPS of $1.69, which increased 4.3% year over year. The figure beat the Zacks Consensus Estimate by 17.4%.
In the past six months, shares of WWD have gained 13.9%.