Factors to Note Ahead of Axcelis' (ACLS) Q2 Earnings Release
Axcelis Technologies Inc ACLS is slated to report second-quarter 2023 results on Aug 2.
The Zacks Consensus Estimate for second-quarter revenues is pegged at $256 million, which suggests growth of 15.7% 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 10.6%.
ACLS’ earnings beat the Zacks Consensus Estimate in all the last four quarters. It has a trailing four-quarter earnings surprise of 16.7%, on average.
In the last reported quarter, revenues jumped 25% year over year to $254 million driven by strong demand for Purion products. Axcelis reported earnings of $1.43 per share compared with $1.22 in the prior-year quarter.
For the second quarter of 2023, Axcelis expects revenues in the range of $255-$260 million while earnings per share are estimated to be between $1.44 and $1.48. Gross margin is anticipated to be 42%. Operating profit is projected to be $55 million.
Axcelis Technologies, Inc. Price and EPS Surprise
Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote
Factors to Note
Axcelis is likely to have benefited from continued demand for Purion suite of products, especially in the fast-growing silicon carbide power segment.
The transition to electric vehicles is driving the silicon carbide power device market. This, in turn, is boosting demand for Purion products especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool.
Driven by solid momentum in Purion Power Series product line, the power device market segment represented 39% of the company’s shipped systems revenues in 2022. Increasing Purion installed base is likely to have boosted Axcelis’ Customer Solutions & Innovation aftermarket business.
ACLS’ advanced Purion Product Extensions have been aiding Axcelis to gain further share in the sensor and power device manufacturing space. With these product extensions in its portfolio, Axcelis has been boasting implant products for both the silicon IGBT and silicon carbide power device market segments.
However, ACLS’ performance in the second quarter is likely to be have been affected due to volatile supply-chain constraints and global macroeconomic weakness. Increasing expenses toward research and development, and infrastructure are likely to be headwinds.
Recent Developments
In July 2023, the company announced that it shipped multiple Purion Power Series ion implanter systems to prominent silicon carbide (SiC) power device chip manufacturers globally in the second quarter of 2023.
The shipments included a Purion H200 SiC evaluation system, Purion H200 high current, Purion EXE high energy, Purion XE high energy and Purion M medium current implanters. Most of the systems were shipped from the company’s Asia Operations Center in South Korea.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Axcelis 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 #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this quarter.
Yelp Inc YELP has an Earnings ESP of +5.63% and carries a Zacks Rank #2. YELP is slated to release second-quarter 2023 numbers on Aug 3.
The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 14 cents per share and $325.6 million, respectively. The stock has increased 43.9% in the past year.
Itron Inc ITRI has an Earnings ESP of +7.61% and currently sports a Zacks Rank #1. ITRI is scheduled to report second-quarter 2023 earnings on Aug 3. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for ITRI’s to-be-reported quarter’s earnings and revenues is pegged at 31 cents per share and $518 million, respectively. The stock has surged 32.1% in the past year.
Cummins Inc CMI has an Earnings ESP of +0.92% and presently has a Zacks Rank #2. CMI is set to report second-quarter 2023 earnings on Aug 3.
The Zacks Consensus Estimate for CMI’s to-be-reported quarter’s earnings and revenues is pegged at $5.19 per share and $8.24 billion, respectively. The stock has gained 18.8% in the past year.
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