Axcelis (ACLS) to Post Q4 Earnings: Key Factors to Note
Axcelis Technologies Inc. ACLS is slated to report fourth-quarter and 2022 results on Feb 8.
The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $251.3 million, which suggests growth of 22.2% from the year-ago quarter’s reported figure. The consensus mark for earnings is pegged at $1.46 per share, indicating a year-over-year increase of 39.1%.
The company’s earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 23.2%, on average.
The company recently increased its revenue guidance for the fourth quarter of 2022, driven by strong demand trends. ACLS now expects fourth-quarter revenues to exceed $250 million compared with the earlier guided range of $232-$240 million.
The company expects to deliver full-year 2022 revenues above $900 million. The company now expects fourth-quarter earnings to exceed $1.45 per share compared with the earlier guided range of $1.00-$1.10 per share. The company expects full-year 2022 earnings to be above $5.00 per share.
Axcelis Technologies, Inc. Price and EPS Surprise
Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote
Factors to Note
The company’s performance in the fourth quarter is likely to have benefited from the increased proliferation of IoT business, which benefits the implant-intensive mature process technology segment. The above-mentioned business comprises nearly 80% of the company’s system revenues.
The company also increased its guidance for the quarter owing to strong demand trends and strong execution by the Axcelis team leading to higher system shipments and aftermarket revenues. Also, favorable forex movements acted as a tailwind, noted Axcelis.
The company is likely to benefit from the continued demand for the Purion suite of products owing to the electrification of the automotive industry. In December 2022, Axcelis announced multiple shipments of the Purion Dragon high current implanter. These shipments also include a follow-on order and a new customer evaluation to semiconductor manufacturers in Asia to aid in advanced memory and logic device development and fabrication.
However, the company’s performance in the fourth quarter is likely to be affected due to ongoing supply-chain constraints and unfavorable foreign currency movement. Also, the company noted that it is likely to suffer due to a slowdown in total wafer fab equipment in 2023.
In January 2023, the company announced multiple new penetrations and follow-on shipments of the Purion Power Series ion implanter systems to silicon carbide chipmakers located across Asia, Europe and the United States. The company expects the power device market to represent 35-40% of its system shipments in 2022 and further grow in 2023.
What Our Model Says
Our proven model does not predict an earnings beat for ACLS this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
ACLS has an Earnings ESP of 0.00% and a Zacks Rank #1. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks With Favorable Combination
Here are some stocks you may consider, as our proven model shows that these have the right mix of elements to beat estimates this time around.
Cambium Networks CMBM has an Earnings ESP of +9.27% and a Zacks Rank #1. CMBM is set to report its fourth-quarter 2022 results on Feb 16. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for CMBM’s to-be-reported quarter’s earnings and revenues is pegged at 26 cents per share and $82.3 million, respectively. Shares of the company have declined 11.3% in the past year.
Bruker BRKR has an Earnings ESP of +3.89% and a Zacks Rank of 2, at present. BRKR is set to report its fourth-quarter 2022 results on Feb 9.
The Zacks Consensus Estimate for BRKR’s to-be-reported quarter’s earnings and revenues is pegged at 72 cents per share and $671.6 million, respectively. Shares of the company have gained 7.5% in the past year.
Perion Network PERI has an Earnings ESP of +13.40% and a Zacks Rank #3. PERI is set to report its fourth-quarter 2022 results on Feb 8.
The Zacks Consensus Estimate for PERI’s to-be-reported quarter’s earnings and revenues is pegged at 70 cents per share and $205.1 million, respectively. Shares of the company have gained 58.8% in the past year.
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