Advanced Energy Industries, Inc. (AEIS - Free Report) reported fourth-quarter 2018 adjusted earnings of 73 cents per share, missing the Zacks Consensus Estimate by 3 cents. Also, the figure declined 44.3% on a year-over-year basis and 30.5% sequentially.
Revenues of $154.2 million missed the Zacks Consensus Estimate of $160 million but were within the company’s guided range of $150-$160 million. The top line declined 14% on a year-over-year basis.
During the quarter, the company recorded strong growth in Industrial and Service businesses, including the benefits realized from the acquisition of LumaSense Technologies.
However, near-term delays in semiconductor capital spending by a large number of manufacturers negatively impacted revenues. Also, several global factors including decelerating growth in end-market demand for semiconductor devices, digestion of equipment capacity, along with uncertainty around trade policies and global economic growth impacted results.
Despite the challenging environment, customers are pursuing new and enabling technologies that will shape the company’s future performance within specific markets.
Management plans to increase investments in new RF products and technologies, and thereby expand its market share gains in critical areas.
The company's shares have lost 25.5% in the past year compared with the industry’s decline of 8.2%.
Product revenues declined about 18.9% year over year to $125 million in the fourth quarter.
Services revenues increased 16.3% from the prior-year quarter to $29.1 million.
Non-GAAP gross profit from continuing operations was 49.4%, down 560 basis points (bps) from the year-ago quarter. This decline was primarily due to high facility transition and relocation costs.
Non-GAAP operating expenses of $47.5 million increased 26.8% year over year. As a percentage of sales, R&D expenses as well as selling, general and administrative costs marked an increase.
As a result, pro-forma operating margin was 18.6%, down 1550 bps year over year.
Advanced Energy Industries, Inc. Price, Consensus and EPS Surprise
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