Semiconductor production equipment company Kulicke & Soffa (NASDAQ: KLIC) will be announcing earnings results tomorrow after market close. Here's what investors should know.
Kulicke and Soffa missed analysts' revenue expectations by 1.2% last quarter, reporting revenues of $172.1 million, flat year on year. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
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 5.6% year on year to $180.1 million, improving from the 48.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.30 per share.
The majority of analysts covering the company have 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 three times over the last two years.
Looking at Kulicke and Soffa's peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. FormFactor delivered year-on-year revenue growth of 26.7%, beating analysts' expectations by 1.3%, and Lam Research reported revenues up 20.7%, topping estimates by 1%. FormFactor traded down 11.8% following the results while Lam Research was also down 10%.
Read our full analysis of FormFactor's results here and Lam Research's results here.
Growth stocks have seen elevated volatility as investors debate the Fed's monetary policy, and semiconductor manufacturing stocks have not been spared, with share prices down 18.6% on average over the last month. Kulicke and Soffa is down 17% during the same time and is heading into earnings with an average analyst price target of $54.8 (compared to the current share price of $41).
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