ONTO Earnings Prediction
The chart below shows how ONTO performed 10 days before and after its earnings report, based on data from the past quarters. Typically, ONTO sees a -0.97% change in stock price 10 days leading up to the earnings, and a +5.17% change 10 days following the report. On the earnings day itself, the stock moves by +0.09%. This data can give you a slight idea of what to expect for the next quarter's release.
ONTO Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
263.94M
20.60%
4.65%
Gross Margin
51.67%
13.81%
4.81%
Operating Margin
21.42%
40.64%
-4.08%
Net Margin
18.50%
33.57%
-12.03%
EPS
0.98
60.66%
-8.41%
No Data Available
ONTO Earnings Analysis
Onto Innovation Inc Corporation (ONTO.N) Earnings Conference Call
Positive
Quarterly Revenue Surge: Record quarterly revenue of $264 million in Q4, representing a 21% increase year-over-year and a 5% increase sequentially from Q3.
Gross Margin Improvement: Gross margins improved to nearly 55% in Q4, achieving a 300 basis point improvement since the beginning of the year.
Metrology Revenue Surge: Metrology revenue in Advanced Packaging exceeded $50 million for the year, more than tripling from 2023, indicating strong customer adoption of front-end metrology tools.
AI Inspection Tool Revenue Growth: AI Packaging inspection tool revenue more than doubled for the year, with a growth rate of 180% over 2023, surpassing initial targets.
Strong Financial Performance: Operating income grew by 37% for the full year, with cash from operations and EPS both achieving 43% growth, reflecting strong financial performance.
Negative
Software Revenue Decline: Fourth quarter software and services revenue decreased by 4% compared to Q3, indicating a decline in this segment's performance.
Decline in Operating Cash Flow: Operating cash flow for Q4 was $56,000,000, down from previous record levels in Q2 and Q3, reflecting a decrease in operational efficiency.
Operating Expenses Surge: Fourth quarter operating expenses reached $68,000,000, at the high end of guidance, suggesting increased costs that may impact profitability.
Financial Strain from M&A: Despite achieving a gross margin of 55% in Q4, merger and acquisition-related expenses and restructuring charges were incurred, indicating financial strain from recent corporate actions.
Inventory Decline Analysis: Inventory levels ended at $287,000,000, down $21,000,000 from Q3, but the decline in inventory may signal reduced demand or operational challenges.
ONTO FAQs
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ONTO Earning Call Sentiment
Earnings call transcript: Onto Innovation beats Q4 2024 expectations
ONTO.N
0.51%Positive
The earnings call highlights strong financial performance with a 21% increase in Q4 revenue and a 42% rise in EPS year-over-year. The company executed a share buyback program, indicating confidence in its valuation. Despite some uncertainties in visibility and competitive pressures, the guidance remains optimistic, and growth in advanced packaging and AI demand is robust. The Q&A session reflects positive analyst sentiment, with expectations to outperform industry growth. Overall, the positive aspects outweigh the risks, suggesting a positive stock price movement in the short term.
