Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Amtech (NASDAQ: ASYS) and the best and worst performers in the semiconductor manufacturing industry.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q1. As a group, revenues missed analysts’ consensus estimates by 0.7% while next quarter’s revenue guidance was 2.9% below.
Luckily, semiconductor manufacturing stocks have performed well with share prices up 11.9% on average since the latest earnings results.
Amtech (NASDAQ: ASYS)
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ: ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Amtech reported revenues of $15.58 million, down 38.7% year on year. This print fell short of analysts’ expectations by 15.8%. Overall, it was a disappointing quarter for the company with revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
I continue to be very encouraged by the strong demand we’re experiencing for semiconductor packaging equipment that supports AI infrastructure builds and by the meaningful progress we’ve made in improving our cost structure. With strong long-term growth drivers, including AI infrastructure investments and our initiatives to grow our consumables, parts and services revenue, we are well positioned to deliver profitable growth and create meaningful long-term value for our shareholders,” commented Mr. Bob Daigle, Chief Executive Officer of Amtech.
Amtech delivered the weakest performance against analyst estimates and slowest revenue growth of the whole group. Interestingly, the stock is up 30.1% since reporting and currently trades at $4.37.
Read our full report on Amtech here, it’s free.
Best Q1: FormFactor (NASDAQ: FORM)
With customers across the foundry and fabless markets, FormFactor (NASDAQ: FORM) is a US-based provider of test and measurement technologies for semiconductors.
FormFactor reported revenues of $171.4 million, up 1.6% year on year, outperforming analysts’ expectations by 0.9%. The business had a strong quarter with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The market seems happy with the results as the stock is up 21.2% since reporting. It currently trades at $34.03.
Is now the time to buy FormFactor? Access our full analysis of the earnings results here, it’s free.
Weakest Q1: Photronics (NASDAQ: PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ: PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $211 million, down 2.8% year on year, in line with analysts’ expectations. It was a disappointing quarter as it posted revenue guidance for next quarter missing analysts’ expectations and a significant miss of analysts’ EPS estimates.
As expected, the stock is down 8.6% since the results and currently trades at $18.36.
Read our full analysis of Photronics’s results here.
Nova (NASDAQ: NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $213.4 million, up 50.5% year on year. This number surpassed analysts’ expectations by 1.2%. It was a strong quarter as it also recorded a solid beat of analysts’ adjusted operating income estimates and an impressive beat of analysts’ EPS estimates.
The stock is up 13.2% since reporting and currently trades at $228.04.
Read our full, actionable report on Nova here, it’s free.
IPG Photonics (NASDAQ: IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ: IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $227.8 million, down 9.6% year on year. This result beat analysts’ expectations by 1.2%. Overall, it was a strong quarter as it also put up an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.
The stock is up 6.3% since reporting and currently trades at $67.09.
Read our full, actionable report on IPG Photonics here, it’s free.
Market Update
In response to the Fed’s rate hikes in 2022 and 2023, inflation has been gradually trending down from its post-pandemic peak, trending closer to the Fed’s 2% target. Despite higher borrowing costs, the economy has avoided flashing recessionary signals. This is the much-desired soft landing that many investors hoped for. The recent rate cuts (0.5% in September and 0.25% in November 2024) have bolstered the stock market, making 2024 a strong year for equities. Donald Trump’s presidential win in November sparked additional market gains, sending indices to record highs in the days following his victory. However, debates continue over possible tariffs and corporate tax adjustments, raising questions about economic stability in 2025.
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