What's in the Offing for Amtech (ASYS) This Earnings Season?

Core Viewpoint - Amtech Systems, Inc. is expected to report a significant decline in revenues and a loss in the upcoming third-quarter fiscal 2024 results, reflecting challenges in demand and inflationary pressures [1][2][3]. Revenue Expectations - For the fiscal third quarter, Amtech anticipates revenues between $22 million and $25 million, with the Zacks Consensus Estimate at $24 million, indicating a 21.9% decline from the previous year [1]. - In the last reported quarter, Amtech's revenues were $25.4 million, surpassing the Zacks Consensus Estimate of $23 million but down 23.7% year over year [2]. Earnings Performance - The consensus estimate for the third-quarter bottom line is a loss of 5 cents per share, contrasting with earnings of 2 cents per share in the same quarter last year [1]. - In the previous quarter, Amtech reported a loss of 1 cent per share, which was better than the consensus estimate of a loss of 11 cents, but still down from earnings of 19 cents per share in the year-ago quarter [2]. Demand and Market Conditions - The company's performance is likely affected by reduced demand for backend packaging applications in the semiconductor industry and a decline in electric vehicle demand, both critical to Amtech's business [3][4]. - Amtech's backlog decreased by $5.7 million to $44.3 million as of March 31, 2024, indicating potential future revenue challenges due to reduced order intake [3]. Inflation Impact - Inflation has negatively impacted Amtech, particularly regarding shipments of equipment booked previously, eroding margins and likely continuing to affect gross margins and overall profitability in the third quarter [4][5]. Earnings Prediction Model - The current model does not predict an earnings beat for Amtech, with an Earnings ESP of 0.00% and a Zacks Rank of 3 (Hold) [6].