Workflow
Advanced Energy (AEIS) Q2 Earnings Top Estimates, Revenues Fall
AEISAdvanced Energy(AEIS) ZACKS·2024-07-31 18:25

Core Insights - Advanced Energy Industries (AEIS) reported non-GAAP earnings of 85 cents per share for Q2 2024, exceeding the Zacks Consensus Estimate by 23.19%, although this represents a 23.4% decline year-over-year [1] - Revenues for the quarter were 365million,surpassingtheZacksConsensusEstimateby5.74365 million, surpassing the Zacks Consensus Estimate by 5.74%, but down 12.1% year-over-year due to weakness in non-semi markets [1] Revenue Breakdown - **Semiconductor Equipment**: Revenues increased by 9% year-over-year to 188 million, accounting for 51.6% of total revenues, and exceeded the Zacks Consensus Estimate by 6.08% [2] - Industrial & Medical: Revenues fell 38% year-over-year to 79.1million,representing21.779.1 million, representing 21.7% of total revenues, and lagged the Zacks Consensus Estimate by 8.68% [3] - **Data Center Computing**: Revenues rose 24% year-over-year to 73 million, making up 20% of total revenues, and beat the consensus mark by 23.82% [3][4] - Telecom & Networking: Revenues decreased 56% year-over-year to 24.56million,whichis6.724.56 million, which is 6.7% of total revenues, but exceeded the Zacks Consensus Estimate by 11.10% [4] Operating Results - Non-GAAP gross margin was 35.3%, down 26 basis points year-over-year [5] - Non-GAAP operating expenses were 95.1 million, a decrease of 3.5% year-over-year, but as a percentage of revenues, it increased by 230 basis points to 26.1% [5] - Non-GAAP operating margin contracted to 9.3%, down 260 basis points year-over-year [6] Balance Sheet & Cash Flow - As of June 30, 2024, cash and cash equivalents stood at 9.86billion,asignificantincreasefrom9.86 billion, a significant increase from 1.01 million as of March 31, 2024 [7] - Cash flow from operations was 6.9million,downfrom6.9 million, down from 8 million in the previous quarter [7] - The company made dividend payments of 3.8millionduringthequarter[7]Guidance−ForQ32024,AEISexpectsnon−GAAPearningsof90centspershare(+/−25cents)andanticipatesrevenuesof3.8 million during the quarter [7] Guidance - For Q3 2024, AEIS expects non-GAAP earnings of 90 cents per share (+/- 25 cents) and anticipates revenues of 370 million (+/- $20 million) [8] Market Position - AEIS currently holds a Zacks Rank 4 (Sell) and has seen its shares decline by 11.7% year-to-date, contrasting with a 7.6% growth in the Zacks Computer & Technology sector [9]