Analysts covering Axcelis Technologies Inc (NASDAQ:ACLS) are predicting high double-digit earnings per share growth of 54.85% over the next 12 months. Presently, with an EPS of $0.993, we can expect an upcoming EPS of $1.538. I am going to look at the latest data on ACLS to assess whether this expected growth is reasonable. Check out our latest analysis for Axcelis Technologies
Can we expect ACLS to keep growing?
Analysts are predicting good growth prospects for Axcelis Technologies over the next year. Expectation from the stock’s 5 analysts is one of positive sentiment, with earnings estimated to grow from current levels of $0.993 to $1.538 over the next year. This illustrates a relatively optimistic outlook in the near term, with a relatively solid earnings per share growth rate of 54.85% over the next 1-2 years. In the same period we should see the revenue grow from $325M $401M
Is this similar growth to the past?
The past can be a helpful indicator for future performance for a stock. We can determine whether this level of expected growth is sustainable and whether the company continues to go from strength to strength. ACLS’s earnings growth last year was a significantly high triple-digit rate, which indicates that the company’s past performance is supportive of a strong continuation. This means ACLS has already proven its capacity to grow at a robust rate, which should give investors higher conviction of analysts’ consensus prediction for the company’s future growth moving forward.
For ACLS, there are three key aspects you should further examine:
1. Financial Health: Does it have a healthy balance sheet? Take a look at our free balance sheet analysis with six simple checks on key factors like leverage and risk.
2. Valuation: What is ACLS worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ACLS is currently mispriced by the market.
3. Other High-Growth Alternatives : Are there other high-growth stocks you could be holding instead of ACLS? Explore our interactive list of stocks with large growth potential to get an idea of what else is out there you may be missing!
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.