Onto Innovation (ONTO) Q2 Earnings Beat, Sales Increase Y/Y

Core Insights - Onto Innovation Inc (ONTO) reported strong second-quarter 2024 earnings, with earnings per share (EPS) of $1.32, exceeding the Zacks Consensus Estimate by 10.9% and significantly up from 79 cents in the prior-year quarter [1] - Revenues reached $242.3 million, surpassing the Zacks Consensus Estimate by 2.9% and reflecting a year-over-year growth of 27.1%, driven by high-performance computing and AI sector demand [2][3] Financial Performance - The revenue of $242.3 million exceeded the company's guidance range of $230-$240 million, with a record $164 million from specialty and advanced packaging customers, primarily due to AI packaging demand [3] - Advanced nodes revenues increased by 45% sequentially to $27 million, while specialty devices and advanced packaging revenues were $158 million, showing a slight sequential rise [5] - Non-GAAP gross profit rose to $129 million from $100.5 million year-over-year, maintaining a gross margin of 53% [6] Operational Highlights - The company secured over $300 million in volume purchase agreements with two major customers, extending through 2025, focusing on AI advanced packaging and gate-all-around technologies [3] - The introduction of the JetStep X500 lithography tool enhances the product portfolio for next-generation glass substrates used in panel-level packaging [4] Balance Sheet and Outlook - As of June 29, 2024, the company had $786 million in cash and equivalents, with total current liabilities of $148.4 million, indicating a solid financial position [7] - For Q3, management expects revenues between $245-$255 million and non-GAAP EPS between $1.25 and $1.35, with the Zacks Consensus Estimate at $231.1 million [8]