Company Performance - Onto Innovation (ONTO) closed at $122.28, reflecting a -1.96% change from the previous day, underperforming the S&P 500's gain of 0.58% [1] - Over the past month, Onto Innovation's shares have increased by 2.79%, outperforming the Computer and Technology sector's gain of 0.6% and the S&P 500's loss of 0.84% [1] Upcoming Earnings - The company's earnings report is scheduled for May 8, 2025, with an expected EPS of $1.47, indicating a 24.58% increase from the same quarter last year [2] - The Zacks Consensus Estimate for revenue is projected at $264.96 million, up 15.78% from the previous year [2] Fiscal Year Estimates - For the entire fiscal year, the Zacks Consensus Estimates predict earnings of $6.09 per share and revenue of $1.07 billion, reflecting increases of +14.04% and +8.62% respectively from the prior year [3] Analyst Estimates - Recent changes in analyst estimates for Onto Innovation are crucial as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Consensus EPS estimate has decreased by 3.21% in the past month, and Onto Innovation currently holds a Zacks Rank of 4 (Sell) [6] Valuation Metrics - Onto Innovation is trading at a Forward P/E ratio of 20.5, which is in line with the industry's average [7] - The company has a PEG ratio of 0.68, indicating a favorable valuation relative to its expected earnings growth [7] Industry Context - The Nanotechnology industry, part of the Computer and Technology sector, has a Zacks Industry Rank of 240, placing it in the bottom 4% of over 250 industries [8] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Performance - Onto Innovation (ONTO) closed at $114.21, reflecting a +1.84% change from the previous session, which is lower than the S&P 500's gain of 2.51% [1] - Over the past month, shares have depreciated by 20.42%, underperforming the Computer and Technology sector's loss of 12.18% and the S&P 500's loss of 8.86% [1] Earnings Estimates - The company is expected to report earnings on May 8, 2025, with projected earnings of $1.47 per share, indicating a year-over-year growth of 24.58% [2] - Revenue is projected at $265.94 million, up 16.21% from the prior-year quarter [2] Full Year Projections - For the full year, earnings are projected at $6.09 per share and revenue at $1.07 billion, reflecting changes of +14.04% and +8.62% respectively from the previous year [3] Analyst Sentiment - Recent changes to analyst estimates indicate evolving short-term business trends, with positive revisions suggesting optimism regarding the company's business and profitability [3] Valuation Metrics - Onto Innovation is currently trading at a Forward P/E ratio of 18.43, which aligns with the industry's average [6] - The company has a PEG ratio of 0.61, comparable to the average PEG ratio of nanotechnology stocks [6] Industry Ranking - The Nanotechnology industry, part of the Computer and Technology sector, holds a Zacks Industry Rank of 89, placing it in the top 36% of over 250 industries [7] - The top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Core Viewpoint - Onto Innovation (ONTO) has experienced a stock decline of 12.8% over the past month, which is less severe than the Nanotechnology industry's decline of 14.2%, amidst escalating trade tensions and tariff issues affecting overall market performance [1]. Company Performance - ONTO stock closed at $120.47, which is 50% below its 52-week high of $238.93 reached on July 16, 2024, indicating potential investment opportunities or risks of a value trap [4]. - The company has shown strong performance throughout 2024, achieving its sixth consecutive quarter of growth, particularly in the AI-driven semiconductor packaging market, which saw a 180% year-over-year revenue increase [8]. - Advanced nodes have been a significant driver of revenue growth, with expectations of continued momentum into 2025, particularly in logic and memory segments [9]. Growth Drivers - The transition to 3D NAND technology is expanding Onto's market opportunities, supported by the launch of innovative products in 2024 [7]. - Demand for Iris film metrology has risen, with annual revenues approaching $100 million, and continued demand is expected in 2025 [10]. - Power revenues increased by 10% in 2024, driven by the development of advanced gallium nitride-based power semiconductors, which are gaining traction due to their efficiency [11]. Financial Projections - Management anticipates total revenues for the first quarter of 2025 to be in the range of $260-$274 million, with non-GAAP earnings per share projected between $1.40 and $1.54 [13]. - A seasonal dip is expected in the first quarter, followed by growth in subsequent quarters, aligning with trends observed in 2024 [12]. Challenges - Non-GAAP operating expenses rose to $68.4 million, a 21.4% increase year-over-year, primarily due to higher R&D investments, which could impact profitability if revenue growth stalls [14]. - The uncertain macroeconomic environment, geopolitical tensions, and intense competition pose risks to the semiconductor industry and ONTO's performance [15]. - ONTO's stock is trading at a premium with a forward 12-month price/earnings multiple of 18.03X compared to the industry's 3.70X, indicating potential valuation concerns [17].

Onto Innovation (ONTO) closed the latest trading day at $137.62, indicating a +1.94% change from the previous session's end. The stock's performance was ahead of the S&P 500's daily gain of 1.08%. Meanwhile, the Dow gained 0.92%, and the Nasdaq, a tech-heavy index, added 1.41%.Shares of the maker of semiconductor manufacturing equipment have depreciated by 21.85% over the course of the past month, underperforming the Computer and Technology sector's loss of 13.17% and the S&P 500's loss of 8.26%.The upcomin ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Fiscal Year Ended December 28, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File No. 001-39110 ONTO INNOVATION INC. (Exact name of registrant as specified in its charter) | Delaware | 94-2276314 | | --- | -- ...

Onto Innovation Inc. (ONTO) reported fourth-quarter 2024 earnings per share of $1.51, which beat the Zacks Consensus Estimate by 8.6%. The bottom line compared favorably with the prior-year quarter's $1.06.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Quarterly revenues of $264 million beat the Zacks Consensus Estimate by 1.7%. The top line expanded 20.6% year over year, nearing the high end of management’s guidance ($253-$267 million). The company delivered its sixth consecutive ...

Onto Innovation (ONTO) came out with quarterly earnings of $1.51 per share, beating the Zacks Consensus Estimate of $1.39 per share. This compares to earnings of $1.06 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.63%. A quarter ago, it was expected that this maker of semiconductor manufacturing equipment would post earnings of $1.31 per share when it actually produced earnings of $1.34, delivering a surprise of 2.29%.Over ...

Financial Data and Key Metrics Changes - The company achieved a record quarterly revenue of $264 million in Q4 2024, representing a 5% increase from Q3 and a 21% increase year-over-year [7][17] - Gross margins improved to nearly 55% in Q4, marking a 300 basis point improvement since the beginning of the year [8][20] - Operating income for Q4 was $75 million, which is 29% of revenue, compared to 28% in Q3 [20] - Full year 2024 revenue growth was 21%, with operating income growth of 37% and cash from operations and EPS both achieving 43% growth [18][19] Business Line Data and Key Metrics Changes - Specialty devices and advanced packaging markets grew 30% for the calendar year, with Q4 revenue from this segment reaching a record $170 million, representing 64% of total revenue [9][19] - Advanced nodes revenue was $48 million in Q4, increasing 12% over Q3 and representing 18% of total revenue [19] - Software and Services revenue decreased by 4% compared to Q3, totaling $46 million, also representing 18% of total revenue [19] Market Data and Key Metrics Changes - AI packaging was the largest market in Q4, driven by strong demand for 2.5%D Logic packaging, while inspection revenue for AI packaging more than doubled for the year [9][10] - Power revenue grew 10% for the year, despite soft end market demand [12] - The company noted a significant increase in interest in the panel market, particularly for glass panels used in enterprise server and AI applications [11] Company Strategy and Development Direction - The company plans to continue focusing on driving gross and operating margin improvements throughout 2025 [8] - New product launches are aimed at strengthening opportunities in advanced packaging, advanced nodes, and power semiconductors, with expected incremental revenues starting later in 2025 [15] - The company sees three secular end markets driving growth: AI demand, gate all around DDR5 memory and high stack 3D NAND, and the electrification of everything [29][30][32] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about strong growth in advanced nodes, particularly in DRAM and NAND, with expectations for increased orders in 2025 [26][28] - The company anticipates that AI will be a multi-year growth driver, with significant revenue growth expected from AI accelerators and related infrastructure projects [29] - Management acknowledged the challenges in visibility for the outer quarters but indicated a healthy demand across advanced nodes and AI packaging [54][56] Other Important Information - The company ended Q4 with cash and short-term investments of $852 million and executed $25 million in share buybacks [22] - Inventory levels decreased to $287 million, achieving six consecutive quarters of decline [23] - The company expects Q1 2025 revenue to be between $260 million and $274 million, with gross margins projected at 54% to 56% [24] Q&A Session Summary Question: Insights on HBM demand and growth potential for 2025 - Management noted that HBM demand is picking up as customers begin to expand and place orders, with an estimated 230,000 wafer starts per month added in 2024, half of which was required by the market [36][38] Question: Expectations for advanced nodes in 2025 - Management indicated that while they may not reach prior peak levels, they are getting close, with growth expected in gate all around and DRAM [40] Question: Revenue growth expectations in relation to industry growth - Management expects to outperform the industry growth rate of 5%, driven by new products and strong secular growth drivers [44] Question: Contribution of new products in 2025 - Management anticipates incremental revenues from new products, with significant contributions expected in 2026 as these products ramp up [87][90] Question: Insights on NAND market expectations - Management acknowledged a surprising increase in NAND demand, particularly from primary customers ramping for high stack 3D NAND applications [93] Question: R&D expenses outlook for 2025 - Management confirmed that R&D expenses will continue to increase incrementally to support customer-driven innovation requirements [97]

Financial Performance - Record revenue of $264 million in Q4 2024, marking the sixth consecutive quarter of growth[3] - Full year revenue reached $987 million, a 21% increase over 2023[3] - GAAP diluted earnings per share of $0.98 in Q4 2024, with non-GAAP diluted earnings per share at $1.51, exceeding guidance[3] - Full year GAAP diluted earnings per share grew by 65% to $4.06, and non-GAAP diluted earnings per share increased by 43% to $5.34[3] - Revenue for the three months ended December 28, 2024, was $263,939 thousand, representing a 20.6% increase from $218,856 thousand for the same period in 2023[25] - Net income for the twelve months ended December 28, 2024, reached $201,670 thousand, a significant increase of 66.5% from $121,159 thousand in 2023[31] - Non-GAAP net income for the three months ended December 28, 2024, was $74,831 thousand, compared to $52,443 thousand for the same period in 2023, reflecting a 42.7% increase[31] - The company reported a diluted earnings per share of $0.98 for the three months ended December 28, 2024, compared to $0.61 for the same period in 2023, representing a 60.7% increase[25] Revenue Growth - AI packaging revenue surged by 180% compared to 2023[3] - Cash generated from operations improved by 43% year-over-year, totaling $246 million for the full year[3] - Advanced nodes revenue has shown improvement for four consecutive quarters, with positive momentum expected to continue into 2025[3] Guidance and Projections - Guidance for Q1 2025 revenue is projected between $260 million and $274 million[6] - Estimated non-GAAP net income per diluted share for the first quarter of 2025 is projected to be between $1.40 and $1.54[33] Operating Performance - Gross profit for the twelve months ended December 28, 2024, was $515,308 thousand, up 22.6% from $420,254 thousand in 2023[25] - Operating income for the three months ended December 28, 2024, was $42,460 thousand, a 50.3% increase compared to $28,230 thousand in the same quarter of 2023[25] - The gross margin as a percentage of revenue for the three months ended December 28, 2024, improved to 55%, up from 52% in the same quarter of 2023[27] - Operating expenses for the twelve months ended December 28, 2024, totaled $328,205 thousand, up from $304,176 thousand in 2023, marking an 8% increase[25] Research and Development - Research and development expenses for the three months ended December 28, 2024, were $34,892 thousand, an increase of 45.3% from $24,021 thousand in the same period of 2023[25] Product Development - New products launched to support next generation 3D interconnect technology and inspection tools[3]

Onto Innovation (ONTO) is set to report fourth-quarter 2024 earnings on Feb. 06, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for fourth-quarter earnings per share (EPS) has been steady at $1.39 in the past 60 days, suggesting growth of 31.1% from the year-ago quarter’s figure. The company expects non-GAAP EPS in the $1.33-$1.48 range.The consensus mark for revenues is pegged at $259.4 million, indicating a rise of 18.5% from th ...