Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be announcing earnings results tomorrow afternoon. Here’s what you need to know.
Kulicke and Soffa beat analysts’ revenue expectations by 0.7% last quarter, reporting revenues of $181.3 million, down 10.4% year on year. It was a softer quarter for the company, with a significant miss of analysts’ adjusted operating income estimates and a significant miss of analysts’ EPS estimates.
Is Kulicke and Soffa a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting Kulicke and Soffa’s revenue to decline 3.6% year on year to $165 million, in line with the 2.9% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.28 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Kulicke and Soffa has missed Wall Street’s revenue estimates twice over the last two years.
Looking at Kulicke and Soffa’s peers in the semiconductor manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 12.3%, beating analysts’ expectations by 1.4%, and Lam Research reported revenues up 16.4%, topping estimates by 1.4%. Teradyne traded down 5.7% following the results while Lam Research was up 7.3%.
Read our full analysis of Teradyne’s results here and Lam Research’s results here.
Valuation multiples for many growth stocks have not yet reverted to their early 2021 highs, but the market has been optimistic as of late due to a soft landing. This is an economic situation where rate hikes successfully quelled inflation but did not send the economy into a recession. Furthermore, recent rate cuts and Donald Trump's triumph in the 2024 Presidential election have been tailwinds for the market, and while some of the semiconductor manufacturing stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.7% on average over the last month. Kulicke and Soffa is down 7.4% during the same time and is heading into earnings with an average analyst price target of $51.60 (compared to the current share price of $43.99).
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