Industry Overview - The Nanotechnology industry is part of the Computer and Technology sector, currently holding a Zacks Industry Rank of 97, which places it in the top 39% of over 250 industries [1] Company Performance - Onto Innovation is forecasted to report an EPS of $1.19, reflecting a 50.63% increase from the same quarter last year, with revenue expected to be $235.6 million, indicating a 23.57% year-over-year increase [2] - For the entire year, Zacks Consensus Estimates predict earnings of $5.05 per share and revenue of $941.16 million, representing increases of +35.39% and +15.36% compared to the previous year [3] Analyst Sentiment - Recent adjustments to analyst estimates for Onto Innovation indicate a favorable outlook on the company's business health and profitability, with positive revisions suggesting a strong near-term business trend [4] - The Zacks Rank system, which has a strong track record of outperformance, currently rates Onto Innovation as 2 (Buy) [7] Valuation Metrics - Onto Innovation has a Forward P/E ratio of 44.27, which is a premium compared to the industry's average Forward P/E of 33.41 [6] Stock Performance - The most recent trading session saw Onto Innovation's stock at $219.45, down 1.85% from the previous day's close, underperforming the S&P 500, which had a daily loss of 0.04% [9] - Over the past month, Onto Innovation's shares have decreased by 0.17%, which is better than the Computer and Technology sector's loss of 2.27% and lagging behind the S&P 500's gain of 4.15% [10]

When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important? Onto Innovation currently has an average brokerage recommendation (ABR) of 1.33, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by six brokerage firms. An ABR of 1.33 approxim ...

The stock is trading 4.5% below its 52-week high of $238.13, suggesting further upside potential. With healthy fundamentals and strong growth opportunities, this Zacks Rank #1 (Strong Buy) stock appears to be a solid investment option at the moment. Apart from a favorable rank, ONTO has a Growth Score of B. Per Zacks' proprietary methodology, stocks with a combination of a Zacks Rank #1 or 2 (Buy) and a Growth Score of A or B offer solid investment opportunities. Factors Driving Growth Onto Innovation's per ...

The five-grade Zacks Rank system, which ranges from a Zacks Rank #1 (Strong Buy) to a Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record of outperformance, with Zacks #1 Ranked stocks generating an average annual return of +25% since 2008. Onto Innovation (ONTO) appears an attractive pick given a noticeable improvement in the company's earnings outlook. The stock has been a strong performer lately, and the momentum might continue with analysts still raising their earnings estimat ...

Onto Innovation Inc (ONTO) reported first-quarter 2024 earnings of $1.18 per share, which beat the Zacks Consensus Estimate by 7.3%. The bottom line increased 28.3% year over year.Revenues of $228.8 million beat the Zacks Consensus Estimate by 2.9%. The top line increased 14.9% year over year. The uptick can be mainly attributed to customer capacity expansions for high-performance computing and high bandwidth memory supporting AI market growth.Revenues also came in within the company’s guided range of $215- ...

Onto Innovation (ONTO) came out with quarterly earnings of $1.18 per share, beating the Zacks Consensus Estimate of $1.10 per share. This compares to earnings of $0.92 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 7.27%. A quarter ago, it was expected that this maker of semiconductor manufacturing equipment would post earnings of $0.99 per share when it actually produced earnings of $1.06, delivering a surprise of 7.07%.Over ...

Revenue Performance - Revenue for Q1 2024 reached $229 million, driven by customer capacity expansions for high-performance computing (HPC) and high bandwidth memory (HBM) supporting AI market growth[6] - Revenue from specialty and advanced packaging customers set a quarterly record of $161 million[6] - Revenue for the three months ended March 30, 2024, was $228.846 million, a 15% increase from $199.165 million for the same period in 2023[27] Profitability Metrics - GAAP gross margin was 52%, while non-GAAP gross margin also stood at 52%[8] - GAAP operating income was $43 million, with GAAP net income of $47 million, reflecting a significant increase compared to previous quarters[6] - Non-GAAP operating income was $57 million, and non-GAAP net income was $58 million, indicating strong operational performance[6] - Gross profit increased to $118.285 million, compared to $104.975 million in the prior year, resulting in a gross margin of 52%[29] - Operating income rose to $42.738 million, up from $29.035 million, reflecting a significant improvement in operational efficiency[27] - Net income for the period was $46.853 million, compared to $29.068 million in the previous year, marking a 61% increase[27] - Non-GAAP net income was reported at $58.452 million, up from $45.047 million, with non-GAAP net income per diluted share increasing to $1.18 from $0.92[32] Cash Flow and Expenses - Cash from operations amounted to $57 million, representing 25% of total revenue[6] - Operating expenses totaled $75.547 million, slightly down from $75.940 million, indicating effective cost management[30] - The company maintained an operating margin of 25% for both GAAP and non-GAAP measures[30] - Interest income increased significantly to $7.361 million from $3.448 million, reflecting improved financial performance[27] Future Outlook - The company expects Q2 2024 revenue to be in the range of $230 to $240 million, with GAAP diluted earnings per share projected between $0.88 and $1.00[11] - The company anticipates a stronger demand for advanced memory and new chiplet architectures, setting the stage for a robust 2025[5] - Future guidance estimates GAAP net income per diluted share between $0.88 and $1.00 for the next quarter[34] Product Development - Shipments of the Dragonfly® G3 inspection system increased over 30% compared to the prior quarter, highlighting strong demand in AI packaging[6] - New capabilities for the Dragonfly G3 inspection system enable 100% wafer inspection for critical sub-surface defects, enhancing product offerings[6] - The company continues to invest in research and development, with R&D expenses at $26.554 million, slightly down from $27.242 million[27]

ONTO Innovation (ONTO) is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for first-quarter earnings per share (EPS) has been steady at $1.10 over the past 30 days, suggesting an increase of 19.6% from the year-ago quarter’s reported figure. The company expects non-GAAP EPS in the range of $1.00-$1.20. Meanwhile, the consensus mark for revenues is pegged at $222.5 million, indicating a rise of 11.7% from the year-earlier quarter’s reported figure. Management expects revenues ...

Onto Innovation (ONTO) recently introduced cutting-edge sub-surface inspection capability for its Dragonfly G3 2D/3D inspection and metrology platform. This innovative capability allows whole wafer inspection by identifying critical defects that have the potential to affect yield and disrupt subsequent processing stages.As the industry shifts towards thinner and multi-layer wafer structures or “die bonding”, the sub-surface defects are riskier than before due to the reduced thickness of bonded layers. This ...

Onto Innovation (ONTO) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.Since ...