COHU Earnings Prediction
The chart below shows how COHU performed 10 days before and after its earnings report, based on data from the past quarters. Typically, COHU sees a +0.97% change in stock price 10 days leading up to the earnings, and a -0.59% change 10 days following the report. On the earnings day itself, the stock moves by -0.05%. This data can give you a slight idea of what to expect for the next quarter's release.
COHU Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
94.12M
-31.41%
-1.28%
Gross Margin
31.57%
-22.18%
-13.67%
Operating Margin
-21.48%
-2052.73%
30.02%
Net Margin
-22.69%
1433.11%
19.80%
EPS
-0.46
-1050.00%
17.95%
No Data Available
COHU Earnings Analysis
Cohu Inc Corporation (COHU.O) Earnings Conference Call
Positive
2024 Revenue Resilience: Full year 2024 revenue was about $402 million, indicating resilience in a challenging market.
Gross Margin Effectiveness: Non-GAAP gross margin for the full year was 45%, showcasing the effectiveness of differentiated products and optimized manufacturing costs.
Effective Revenue Management: Fourth quarter revenue was within guidance, demonstrating effective management and forecasting.
Segment Revenue Growth: Systems revenue increased sequentially in computing, industrial, and consumer segments, indicating growth in these areas despite declines in automotive and mobile.
Test Cell Utilization Increase: Estimated test cell utilization increased to 73%, with OSATs improving to 76%, reflecting positive trends in customer demand and operational efficiency.
Market Expansion and Revenue Growth: Cohu entered the memory and silicon carbide power semiconductor markets, with positive growth prospects in HBM expected to deliver $7 million of revenue this year.
Design Win for 800G Switches: The company secured a design win for testing 800G switches, highlighting its strong positioning in the data center market and AI applications.
Software Platform Growth: Cohu's software platform is expected to grow significantly, with an annual growth rate of 50% or more over the next three years, driven by AI-powered solutions.
AI and Analytics Enhancement: The acquisition of Tignis is expected to enhance Cohu's capabilities in AI and analytics, further supporting growth in software revenue.
Strong Balance Sheet Support: Cohu's balance sheet remains strong, supporting investment opportunities and returning capital to shareholders through share repurchase programs.
Negative
Revenue Decline Overview: Full year 2024 revenue was about $402 million, indicating a downturn in Cohu’s main market segments.
Gross Margin Impact Analysis: Fourth quarter gross margin was impacted by a $2.1 million inventory reserve charge, resulting in a gross margin of 41.8%, which was about 220 basis points lower than guidance.
Customer Concentration Risk: A significant customer in the automotive market accounted for more than 10% of sales in Q4, raising concerns about customer concentration risk.
Operating Loss Analysis: Q4 non-GAAP operating loss was approximately $6 million, indicating financial strain during the quarter.
Cash Decrease Analysis: Cash and investments decreased by $7 million during Q4, reflecting operational challenges and capital expenditures.
Q1 Revenue Outlook Adjustment: Recent customer requests to delay Q1 shipments have negatively impacted the initial revenue outlook for Q1 2025, leading to a guidance of approximately $97 million plus or minus $7 million.
Rising Operating Expenses: Operating expenses for Q1 are forecasted to be approximately $49 million, about $4 million higher than Q4, indicating rising costs.
Non-GAAP Tax Provision Estimate: The Q1 non-GAAP tax provision is expected to be approximately $3 million, reflecting ongoing tax burdens without benefits from U.S. losses.
COHU FAQs
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COHU Earning Call Sentiment
Cohu, Inc. (NASDAQ:COHU) Q4 2024 Earnings Call Transcript
COHU.O
4.69%Positive
Despite strong new product revenue and market expansion prospects, the earnings call highlighted concerns like declining margins, a non-GAAP operating loss, and a lower-than-expected Q4 gross margin. The Q&A revealed management's uncertainty about market recovery and revenue timing, negatively impacting sentiment. However, optimistic guidance for Q1 and potential revenue from new products slightly offset these concerns. The small-cap nature of the company suggests potential volatility, but overall, the stock price movement is likely to remain within a neutral range.
