AEIS Earnings Prediction
The chart below shows how AEIS performed 10 days before and after its earnings report, based on data from the past quarters. Typically, AEIS sees a +0.72% change in stock price 10 days leading up to the earnings, and a +2.24% change 10 days following the report. On the earnings day itself, the stock moves by -0.17%. This data can give you a slight idea of what to expect for the next quarter's release.
AEIS Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
415.40M
2.50%
11.01%
Gross Margin
35.91%
7.16%
5.56%
Operating Margin
9.37%
9.72%
71.61%
Net Margin
11.81%
26.31%
-412.43%
EPS
1.29
29.00%
-422.50%
No Data Available
AEIS Earnings Analysis
Advanced Energy Industries Inc Corporation (AEIS.O) Earnings Conference Call
Positive
Q4 Revenue Exceeds Guidance: Revenue of $415 million in Q4 exceeded guidance and marked a return to year-over-year growth, driven by strong demand in semiconductor and data center computing.
Record Gross Margin Achievement: Fourth quarter gross margin reached 38%, the highest in three years, benefiting from increased volume and improved factory efficiency.
Earnings Per Share Growth: Fourth quarter earnings per share were $1.3, surpassing guidance and reflecting year-over-year growth from $1.24.
Semiconductor Revenue Surge: In 2024, semiconductor revenue grew 7% from the trough in 2023, achieving its highest level in two years by Q4, while data center revenues grew 14% and reached record product revenue levels.
Product Launch Efficiency: The company launched 35 new platform products in 2024, with a significant reduction in development cycle time from 18 months to less than 4 months, enhancing customer engagement and opportunities.
Negative
Revenue Decline Analysis: Revenue for the full year 2024 decreased by 10% year over year, primarily due to significant declines in the industrial medical and telecom networking markets, which were down 33% and 53% respectively.
Flat Industrial and Medical Revenue: Industrial and medical revenue in Q4 was flat quarter over quarter and down year over year, indicating ongoing sluggishness in these markets as customers continue to work through elevated inventory levels.
Operating Expenses Increase: Operating expenses increased by 5% in Q4 to $102 million, driven largely by higher sales and incentive-related expenses, which could pressure margins moving forward.
Q4 Cash Flow Analysis: Cash flow from operations in Q4 was $83 million, just below last year's record, suggesting potential challenges in maintaining cash flow growth amid market headwinds.
Gross Margin Decline Expected: The company expects Q1 gross margin to decline slightly to approximately 37% to 37.5%, indicating potential pressure on profitability as revenue levels fluctuate.
AEIS FAQs
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AEIS Earning Call Sentiment
Earnings call transcript: Advanced Energy Q4 2024 beats EPS forecasts
AEIS.O
-5.65%Positive
The earnings call summary shows strong financial performance with revenue and gross margin growth, particularly in semiconductor and data center computing. The Q&A session revealed potential recovery in industrial medical and effective supply chain management. Despite some uncertainties, such as economic factors and acquisition risks, the company's strategic initiatives and shareholder return plan suggest a positive outlook. Considering the market cap of $4 billion, the stock price is likely to rise between 2% to 8% over the next two weeks.
