Axcelis Technologies (ACLS, Financial) reported impressive first-quarter revenue of $192.6 million, exceeding market expectations of $184.86 million. The company's President and CEO highlighted the successful execution during the quarter, which led to robust profitability. Despite a challenging economic environment and a cautious approach to customer investments, Axcelis remains well-equipped to manage the evolving macroeconomic and global trade landscape.
Over recent years, Axcelis has optimized its global manufacturing and supply chain operations, enhancing its flexibility and responsiveness. This strategic positioning allows the company to effectively address customer demands while continuing to invest in innovation. These efforts are aimed at ensuring long-term growth, providing a strong foundation to capitalize on future opportunities.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 5 analysts, the average target price for Axcelis Technologies Inc (ACLS, Financial) is $83.71 with a high estimate of $144.57 and a low estimate of $50.00. The average target implies an upside of 60.71% from the current price of $52.09. More detailed estimate data can be found on the Axcelis Technologies Inc (ACLS) Forecast page.
Based on the consensus recommendation from 8 brokerage firms, Axcelis Technologies Inc's (ACLS, Financial) average brokerage recommendation is currently 2.8, indicating "Hold" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Axcelis Technologies Inc (ACLS, Financial) in one year is $82.73, suggesting a upside of 58.82% from the current price of $52.09. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Axcelis Technologies Inc (ACLS) Summary page.
ACLS Key Business Developments
Release Date: February 11, 2025
- 4th Quarter Revenue: $252 million.
- Earnings Per Diluted Share (EPS): $1.54.
- Systems Revenue: $187.4 million.
- CS&I Revenue: $65 million.
- Gross Margin: 46%.
- Operating Expenses: $61.7 million.
- Operating Profit: $54.5 million.
- Operating Margin: 21.6%.
- Full Year 2024 Revenue: $1.02 billion.
- Full Year Gross Margin: 44.7%.
- Full Year Operating Income: $211 million.
- Full Year EPS: $6.15.
- Free Cash Flow (4th Quarter): $8 million.
- Share Repurchase (4th Quarter): $15 million.
- Cash and Short-term Investments: $571 million.
- Backlog: $646 million.
- Bookings (4th Quarter): $84.5 million.
- 1st Quarter 2025 Revenue Outlook: Approximately $185 million.
- 1st Quarter 2025 Gross Margin Outlook: Approximately 40%.
- 1st Quarter 2025 EPS Outlook: Approximately $0.38.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Axcelis Technologies Inc (ACLS, Financial) reported better-than-expected revenue for the 4th quarter of 2024, reaching $252 million, driven by strong demand for aftermarket CS&I sales.
- The company achieved a gross margin of 46% in the 4th quarter, exceeding their outlook of 42.5%, primarily due to higher CS&I revenue.
- Axcelis Technologies Inc (ACLS) maintained a strong balance sheet with $571 million in cash and no debt, providing a solid foundation for future investments.
- The company received 22 customer awards in 2024, indicating strong customer satisfaction and recognition for supplier excellence.
- Axcelis Technologies Inc (ACLS) is strategically expanding its footprint in the advanced logic market and Japan, aiming for long-term growth opportunities.
Negative Points
- The company anticipates a decline in overall revenue for 2025, primarily due to capacity digestion in the power and general mature markets, especially in China.
- Silicon carbide revenue is expected to decline sequentially in the first quarter of 2025 as customers undergo a digestion period.
- The memory market remains soft, with Axcelis Technologies Inc (ACLS) expecting muted NAND sales and only modest growth in DRAM for 2025.
- The company faces challenges from new US government export restrictions, which could impact revenue from China, although the impact is expected to be at the lower end of the previously estimated range.
- Operating expenses are projected to be slightly higher in 2025 due to continued investments in R&D and customer engagement, which may pressure margins in the short term.
