Why Axcelis Technologies Stock Plummeted Today

Core Viewpoint - Axcelis Technologies reported strong fourth-quarter results but issued disappointing forward guidance, leading to a significant drop in stock price [1][2][3]. Financial Performance - The company reported earnings per share (EPS) of $1.54 on revenue of$252.42 million for the fourth quarter, surpassing analyst estimates of $1.25 EPS and$244.95 million in revenue [2]. - Year-over-year sales declined approximately 19%, but the results still exceeded Wall Street targets [2]. - Diluted EPS fell roughly 28% compared to the prior year, yet remained better than average analyst expectations [3]. Forward Guidance - For the first quarter, management anticipates revenue of approximately $185 million, significantly lower than the$221.6 million expected by analysts and down from $252.4 million in the same quarter last year [4]. - Projected earnings per diluted share are expected to be$0.38, a substantial decrease from $1.57 a year ago [4]. Market Outlook - Despite expectations for growth in the silicon carbide market, Axcelis anticipates weaker demand as customers deplete existing supplies [5]. - Overall revenue is expected to decline this year due to this trend and softer demand in the Chinese market [5]. - Management does foresee moderate sales improvement in the second half of the year, with strong long-term results expected from product categories like silicon carbide and memory recovery [6].