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Onto Innovation (ONTO) Q2 Earnings & Revenues Top Estimates

Onto Innovation Inc ONTO reported second-quarter 2022 earnings of $1.28 per share, up 39% year over year and beating the Zacks Consensus Estimate by 1.6%.

Revenues of $256.3 million beat the Zacks Consensus Estimate by 6.1%. The top line increased 32.5% year over year. The upside can be attributed to higher demand from several end markets, particularly advanced nodes specialty devices and advanced packaging. The customer acceptance of the company’s JetStep X500 lithography systems also acted as a tailwind.

Revenues from the advanced nodes market were up 47% year over year, while revenues from specialty devices and advanced packaging increased 28% year over year. Software and services revenue was up 19% year over year. Sales from specialty devices and advanced packaging contributed 46% to revenues. Advanced node markets contributed 37% and software and services accounted for 17%.

In the quarter under review, the company secured 11 pre-orders for 75 DragonflyG3 systems combined with new EB40 modules. The orders will be shipped over the next several quarters.

Following the announcement, the company’s shares are up 0.3% in the aftermarket trading on Aug 10. In the past year, shares of Onto Innovation have lost 2.8% against the industry’s decline of 4.8%.

Onto Innovation Inc. Price, Consensus and EPS Surprise

 

Onto Innovation Inc. Price, Consensus and EPS Surprise
Onto Innovation Inc. Price, Consensus and EPS Surprise

Onto Innovation Inc. price-consensus-eps-surprise-chart | Onto Innovation Inc. Quote

 

Margin Details

Total operating expenses increased to $74.7 million, rising 7.4% from $69.5 million in the prior-year quarter.

Non-GAAP gross profit rose to $132.1 million from $105.5 million, with respective margins of 52% and 55%. Non-GAAP operating income was $73.1 million compared with $49.7 million in the year-ago quarter. Non-GAAP operating margin was 29%, up from 26% reported in the prior-year quarter.

Balance Sheet

As of Jul 2, 2022, the company had $545 million in cash and cash equivalents, with $176.7 million of total current liabilities. Accounts receivable stood at $234.7 million.

Q3 Guidance

The company expects revenues of $242-$258 million. Non-GAAP earnings per share are estimated to be $1.21-$1.42.

Zacks Rank & Stocks to Consider

Onto Innovation currently has a Zacks Rank #3 (Hold).

Some other top-ranked stocks from the broader technology sector worth consideration are Cadence Design Systems CDNS, Intuit INTU and Badger Meter BMI. Cadence and Badger Meter sports a Zacks Rank #1 (Strong Buy), while Intuit carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for BMI’s 2022 earnings is pegged at $2.30 per share, up 7% in the past 60 days. Badger Meter’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters, with the average being 12.6%. Shares of BMI have lost 4.8% of their value in the past year.

The Zacks Consensus Estimate for Cadence’s 2022 earnings is pegged at $4.11 per share, up 5.7% in the past 60 days. The long-term earnings growth rate is anticipated to be 17.7%.

CDNS earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 9.8%. Shares of CDNS have increased 23.8% in the past year.

The Zacks Consensus Estimate for Intuit’s fiscal 2022 earnings is pegged at $11.72 per share, rising 0.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 15.6%.

Intuit’s earnings beat the Zacks Consensus Estimate in three of the last four quarters, the average being 16.8%. Shares of INTU have lost 12.9% in the past year.


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