ACM Research ACMR is scheduled to report third-quarter 2024 results before market open on Nov. 7.

For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $192 million, indicating growth of 13.9% from the year-ago quarter’s reported value.

The Zacks Consensus Estimate for earnings is pegged at 28 cents per share, suggesting a fall of 50.9% from the year-ago figure. The figure has been unchanged over the past 60 days.

ACM Research’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with the average surprise being 136%.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Factors to Consider for ACMR

Strength in semiconductor fabrication supported by a strong cleaning portfolio, front-end processing tools and differentiated technology is likely to have driven ACM Research’s top-line growth in the third quarter.

Growing demand for single-wafer cleaning tools, especially the Sulfuric Peroxide Mixture portion of the cleaning market is expected to have aided the third-quarter performance. The strong adoption of ACMR’s prime SAPS Tahoe and TEBO single-wafer cleaning products is likely to have continued its positive impact on sales in the third quarter.

ACM Research’s latest technological innovations, coupled with increasing market share gain across the United States, Korea and Taiwan, and mainland China are expected to have boosted the third quarter performance.
 

ACM Research, Inc. Price and EPS Surprise

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

The company’s recent introduction of Frame Wafer Cleaning Tool and new additions to its FOPLP portfolio, such as Ultra C bev-p panel bevel etching tool and Ultra C vac-p flux cleaning tool, are expected to have been major positives for its third-quarter performance.

Robust demand for the company's chiplet designs, owing to the current artificial intelligence (AI) boom, is expected to have bolstered its presence in the advanced packaging market in the quarter under review. The transition to 3D architecture for NAND, DRAM and logic is increasing the demand for its vertical cleaning solutions, including TEBO and supercritical CO2 dry, as well as the proprietary furnace ALD design.

High bandwidth memory requirements are driving demand for its TSV plating and 2.5D advanced packaging solutions in the third quarter.

However, ACMR’s significant challenges from macroeconomic uncertainties and intensifying competition in the semiconductor industry might have softened its third-quarter performance. The negative impacts of escalating tensions between the United States and China do not bode well for semiconductor companies. Changes in the spending patterns of key customers and supply-chain constraints are other headwinds are likely to have hurt its performance in the to-be-reported quarter.

What Our Proven Model Says

According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

ACM Research has an Earnings ESP of 0.00% and carries a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some stocks worth considering, as our model shows that they have the right combination of elements to beat on earnings this reporting cycle.

Arista Networks ANET has an Earnings ESP of +0.72% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Arista Networks’ shares have surged 67.4% year to date. It is slated to report its third-quarter 2024 results on Nov. 7.

The Zacks Consensus Estimate for ANET’s third-quarter 2024 earnings is pegged at $2.09 per share, up by a penny over the past 60 days. This suggests an improvement of 14.2% from the year-ago quarter’s reported figure.

Shopify SHOP has an Earnings ESP of +5.78% and sports a Zacks Rank #1 at present. SHOP’s shares have gained 1.4% year to date. It is set to report third-quarter 2024 results on Nov. 12.

The Zacks Consensus Estimate for SHOP’s third-quarter 2024 earnings is pegged at 27 cents per share, unchanged the past 60 days, indicating an improvement of 12.5% from the year-ago quarter’s reported figure.

Bilibili BILI has an Earnings ESP of +10.00% and carries Zacks Rank #2 at present.

BILI shares have surged 80% year to date. It is slated to release third-quarter 2024 results on Nov. 14.

The Zacks Consensus Estimate for BILI’s earnings is pegged at 10 cents per share, up by a penny over the past 60 days. This indicates a rise of 134.5% from the year-ago quarter’s reported figure.

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