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What's in the Offing for ACM Research (ACMR) Q4 Earnings?

Zacks Equity Research

ACM Research, Inc. ACMR is scheduled to report fourth-quarter 2019 results on Mar 18.

For the fourth quarter, the Zacks Consensus Estimate for revenues is pegged at $23.1 million, indicating growth of 10.8% from the prior-year quarter.

Further, the consensus mark for earnings per share is pegged at 10 cents per share, which suggests a decline of 37.5% from the year-ago quarter.

The company delivered an average positive earnings surprise of 112.42% by beating the Zacks Consensus Estimate in three of the trailing four quarters.

ACM Research, Inc. Price and EPS Surprise

ACM Research, Inc. Price and EPS Surprise

ACM Research, Inc. price-eps-surprise | ACM Research, Inc. Quote

Factors to Consider

ACM Research’s innovative technologies and robust product portfolio are expected to have driven customer momentum in the fourth quarter.

We believe rising demand for ACM Research’s high volume single-wafer wet cleaning equipment as a result of scaled-up production capacity by its customers is likely to have driven the fourth quarter results.

Strengthening relationship with YMTC is likely to have acted as a tailwind. Growing deployment of the company’s single-wafer wet cleaning tools in the YMTC’s several cleaning procedures is anticipated to have benefited the fourth-quarter top line.

Further, solid demand for the company’s tools in Huali’s Shanghai production unit and new fab in Wuxi are expected to have accelerated revenue generation in the quarter under review.

Apart from this, strengthening momentum across First Tool and SAPS-V product is expected to have driven the company’s shipment growth in the quarter under review.

Further, synergies associated with the company’s new product lines are expected to get reflected in the fourth-quarter results.

The company is likely to have gained traction among the packaging customers on the heels of its ECP AP tools in the fourth quarter.

Further, successful technical trials of the company’s Ultra-C Tahoe remain major positives. ACM Research is expected to have sustained momentum with its leading customer for Tahoe during the quarter under review.

Also, the company’s progress in the development process of TEBO is anticipated to get reflected in the fourth-quarter performance.

However, mounting expenses of the company are likely to have weighed on the fourth-quarter performance.

What Our Model Says

Our proven model doesn’t conclusively predict an earnings beat for ACM Research 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. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

ACM Research has an Earnings ESP of 0.00% and a Zacks Rank #1.

Stocks to Consider

Here are some stocks you may consider, as our proven model shows that these have the right combination of elements to post an earnings beat this quarter.

Micron Technology, Inc. MU has an Earnings ESP of +5.05% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Tencent Holding Ltd. TCEHY has an Earnings ESP of +6.03% and a Zacks Rank #2.

lululemon athletica inc. LULU has an Earnings ESP of +0.27% and a Zacks Rank #2.

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