Axcelis Technologies (ACLS, Financial) recently experienced a noteworthy stock price movement following an earnings report that exceeded expectations. The stock price currently stands at $57.66, reflecting a weekly appreciation of 10.25%. However, there was a daily decline of 2.04% in the stock price.
Axcelis announced its first-quarter revenue for 2025 at $192.6 million, compared to over $252 million in the same quarter of 2024. The non-GAAP net income declined to $33.8 million, or $1.04 per share, down from the previous year's $55.2 million. Despite these declines, the company's earnings per share of $1.04 surpassed analyst expectations of $1.00 per share, although revenue did not meet the forecasted $221.6 million. CEO Russell Low emphasized the company's strong profitability amidst reduced customer investments and economic uncertainty.
For the second quarter, Axcelis anticipates revenue of approximately $185 million with adjusted net income of $0.73 per share. Analysts, however, expect slightly higher revenue at $189 million, but with lower adjusted net income of $0.50 per share.
In terms of valuation, Axcelis Technologies (ACLS, Financial) is currently deemed "Significantly Undervalued" according to its GF Value, which is set at $93.36. This suggests a potential upside given its current market price of $57.66. Axcelis exhibits strong financial strength with a price-to-earnings (P/E) ratio of 10.56 and a price-to-book (P/B) ratio of 1.8. Its debt-to-equity ratio stands commendably low at 0.04, indicating robust balance sheet management.
The company also shows a healthy operating margin of 19.14%, and its gross margin is notable at 44.61%. The Altman Z-score of 6.18 implies financial soundness, reducing the likelihood of bankruptcy. Furthermore, the Beneish M-Score of -2.43 indicates that the company is unlikely to be involved in financial manipulation.
From a growth perspective, Axcelis exhibits a 3-year revenue growth rate of 17.2%, positioning it well within the semiconductor industry. With strong metrics such as a gross margin expansion and a high return on invested capital (ROIC) of 22.47%, Axcelis Technologies remains a compelling consideration for investors looking for opportunities within the semiconductor sector.
