Axcelis Technologies Inc ACLS is slated to report third-quarter 2024 results on Nov. 6.

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For the third quarter, ACLS estimates revenues of approximately $255 million. The Zacks Consensus Estimate for revenues also stands at $255.1 million, indicating a 12.7% decline from a year ago. 

ACLS expects earnings per share for the quarter to be $1.43. The consensus mark for EPS is also pegged at $1.43, unchanged in the past 60 days and indicating a 28.1% decrease from the prior-year levels. 

Axcelis Technologies, Inc. Price and EPS Surprise

Axcelis Technologies, Inc. price-eps-surprise | Axcelis Technologies, Inc. Quote

ACLS’ earnings beat the Zacks Consensus Estimate in each of the trailing four quarters with an average of 14.9%. In the past year, shares have lost 33.4% against the industry’s growth of 12.5%.

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Factors to Note for Axcelis’ Q3 Earnings Release

ACLS’ performance in the third quarter is likely to have benefited from continued momentum in demand for its ion implantation systems, especially in the silicon-carbide power market. The transition to electric vehicles has been driving the silicon carbide power device market. This, in turn, has been boosting demand for Purion Power series products, especially PurionH200 silicon carbide, Purion XE silicon carbide systems and Purion M silicon carbide tool. 

The company has been also capitalizing on emerging opportunities in AI data centers. Recent customer announcements of new silicon carbide-based trench MOSFET products underscore the growing need for high implant intensity technologies, which are a strength of Axcelis. Management expects revenues in the second half of 2024 to be “slightly better” than the first half. 

Axcelis did not generate any systems revenues from the memory market in the second quarter of 2024. The company expects a recovery in demand for DRAM chips driven by high bandwidth needs for AI applications by 2025. The overall wafer front-end spending in NAND remains soft with revenues from NAND applications projected to start improving by 2025. These near-term headwinds may have acted as headwinds in the to-be-reported quarters. 

Axcelis remains wary regarding the demand trends from the General Mature market segment. The company noted that demand may moderate in the second half of 2024 due to the macroeconomic environment and its impact on customer spending patterns. 

Volatile supply-chain dynamics and global macroeconomic weakness are likely to have acted as additional headwinds along with increasing expenses toward research and development and infrastructure.

What Our Model Predicts for ACLS

Our proven model does not 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. This is not the case here. 

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.

BlackSky Technology Inc. BKSY currently has an Earnings ESP of +29.51% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here. 

BKSY is scheduled to report quarterly earnings on Nov. 7. The Zacks Consensus Estimate for BKSY’s to-be-reported quarter’s bottom line is pegged at a loss of 61 cents. The consensus estimate for revenues is pegged at $26.9 million. Shares of BKSY have lost 20.9% in the past year.

Yelp Inc. YELP presently has an Earnings ESP of +15.48% and a Zacks Rank #1. YELP is scheduled to report quarterly numbers on Nov. 7. The Zacks Consensus Estimate for YELP’s to-be-reported quarter’s earnings and revenues is pegged at 40 cents per share and $362.1 million, respectively. Shares of YELP have lost 24.8% in the past year.

Fortinet, Inc. FTNT has an Earnings ESP of +1.25% and a Zacks Rank #2 at present. Fortinet is scheduled to report quarterly figures on Nov. 7.  The Zacks Consensus Estimate for FTNT’s to-be-reported quarter’s earnings and revenues is pegged at 51 cents per share and $1.48 billion, respectively. Shares of FTNT have increased 57.2% in the past year.

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Axcelis Technologies, Inc. (ACLS) : Free Stock Analysis Report

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