As we reflect back on the just completed Q1 semiconductor manufacturing sector earnings season, we dig into the relative performance of Amtech (NASDAQ:ASYS) and its peers.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers and data storage. The growth of data and technologies like artificial intelligence, 5G networks and smart cars are also creating a next wave of growth for the industry. To keep up with ever changing customer needs requires new tools that can design, fabricate and test at ever smaller sizes and more complex architectures, and that is driving the demand for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 3.16%, while on average next quarter revenue guidance was 1.49% under consensus. Tech stocks have been hit the hardest as investors start to value profits over growth, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 18.2% since the previous earnings results, on average.
Focusing on Silicon Carbide and Power Semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces machinery and related chemicals needed for manufacturing semiconductors.
Amtech reported revenues of $33.3 million, up 24.8% year on year, beating analyst expectations by 8.33%. It was a mixed quarter for the company, with a significant improvement in inventory levels but underwhelming revenue guidance for the next quarter.
“These strong results demonstrate the resiliency of our product and end market diversification. We believe our strategy to capitalize on multiple, high-growth, megatrend opportunities and efforts on operational optimization are creating a strong and durable foundation in preparation for sustainable value creation,” commented Mr. Michael Whang, Chief Executive Officer of Amtech.
The stock is down 0.23% since the results and currently trades at $8.8.
Best Q1: Photronics (NASDAQ:PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $229.3 million, up 12.1% year on year, beating analyst expectations by 8.68%. It was an exceptional quarter for the company, with a significant improvement in gross margin and strong revenue guidance for the next quarter.
Photronics delivered the strongest analyst estimates beat among its peers. The stock is up 44.4% since the results and currently trades at $24.86.
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Weakest Q1: IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of most of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers that are used for cutting, welding and processing raw materials.
IPG Photonics reported revenues of $347.2 million, down 6.16% year on year, beating analyst expectations by 5.01%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
The stock is up 10.2% since the results and currently trades at $130.08.
KLA Corporation (NASDAQ:KLAC)
Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.
KLA Corporation reported revenues of $2.43 billion, up 6.29% year on year, beating analyst expectations by 2.36%. It was a mixed quarter for the company, with a beat on the bottom line but an increase in inventory levels.
The stock is up 27.1% since the results and currently trades at $454.5.
With most major chip manufacturers as customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technology and devices.
Teradyne reported revenues of $617.5 million, down 18.2% year on year, beating analyst expectations by 2.4%. It was a mixed quarter for the company, with a beat on the bottom line but a decline in operating margin.
The stock is up 13.6% since the results and currently trades at $106.
The author has no position in any of the stocks mentioned