Axcelis(US:ACLS) ZACKS·2024-11-04 14:20Core Insights - Axcelis Technologies Inc (ACLS) is expected to report third-quarter 2024 results on November 6, with estimated revenues of approximately $255 million, reflecting a 12.7% decline year-over-year [1] - The earnings per share (EPS) for the quarter is projected to be $1.43, indicating a 28.1% decrease from the previous year [2] Revenue and Earnings Expectations - The Zacks Consensus Estimate for revenues stands at $255.1 million, aligning closely with ACLS's own estimates [1] - The consensus mark for EPS is unchanged in the past 60 days, also pegged at $1.43 [2] Historical Performance - ACLS has consistently beaten the Zacks Consensus Estimate in the past four quarters, with an average earnings surprise of 14.9% [2] - Over the past year, ACLS shares have declined by 33.4%, contrasting with the industry growth of 12.5% [2] Market Dynamics - Demand for ACLS's ion implantation systems is expected to benefit from the growing silicon-carbide power market, driven by the transition to electric vehicles [2][3] - The company is also capitalizing on opportunities in AI data centers, with increasing demand for high implant intensity technologies [3] Sector Challenges - ACLS did not generate any systems revenues from the memory market in the second quarter of 2024, but anticipates a recovery in DRAM chip demand by 2025 [4] - The overall wafer front-end spending in NAND remains soft, with improvements projected by 2025 [4] - The company is cautious about demand trends in the General Mature market segment, expecting moderation in the second half of 2024 due to macroeconomic factors [5] Operational Headwinds - Volatile supply-chain dynamics and global macroeconomic weakness are likely to pose additional challenges, alongside rising research and development expenses [6] - The company's earnings model does not predict an earnings beat for this quarter, with an Earnings ESP of 0.00% and a Zacks Rank of 3 [7]