Yahoo Finance Semiconductor Manufacturing Stocks Q1 Teardown: Kulicke and Soffa (NASDAQ:KLIC) Vs The Rest
As the craze of earnings season draws to a close, here's a look back at some of the most exciting (and some less so) results from Q1. Today, we are looking at semiconductor manufacturing stocks, starting with Kulicke and Soffa (NASDAQ:KLIC).
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q1; on average, revenues beat analyst consensus estimates by 1.3%. while next quarter's revenue guidance was in line with consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, but semiconductor manufacturing stocks have performed well, with the share prices up 20.4% on average since the previous earnings results.
Kulicke and Soffa (NASDAQ:KLIC)
Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Kulicke and Soffa reported revenues of $172.1 million, flat year on year, falling short of analysts' expectations by 1.2%. Overall, it was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Fusen Chen, Kulicke & Soffa's President and Chief Executive Officer, stated, "Despite a shifting Advanced Display market, we remain nimble and efficiency focused. We are preparing for broader Ball Bonder demand recovery and have reallocated Advanced Display resources to support growing demand and activity within Thermocompression and Advanced Dispense. We look forward to achieve new customer and market adoption milestones over the coming quarters."
The stock is up 20.2% since reporting and currently trades at $53.24.
Read our full report on Kulicke and Soffa here, it's free.
Best Q1: Lam Research (NASDAQ:LRCX)
Founded in 1980 by David Lam, who pioneered semiconductor etching technology, Lam Research (NASDAQ:LCRX) is one of the leading providers of the wafer fabrication equipment used to make semiconductors.
Lam Research reported revenues of $3.79 billion, down 2% year on year, outperforming analysts' expectations by 1.7%. It was a strong quarter for the company with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
The market seems happy with the results as the stock is up 21.5% since reporting. It currently trades at $1,075.
Is now the time to buy Lam Research? Access our full analysis of the earnings results here, it's free.
IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $252 million, down 27.4% year on year, in line with analysts' expectations. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
IPG Photonics posted the slowest revenue growth in the group. Interestingly, the stock is up 1.7% since the results and currently trades at $90.05.
Read our full analysis of IPG Photonics's results here.
Amkor (NASDAQ:AMKR)
Operating through a largely Asian facility footprint, Amkor Technologies (NASDAQ:AMKR) provides outsourced packaging and testing for semiconductors.
Amkor reported revenues of $1.37 billion, down 7.2% year on year, in line with analysts' expectations. Revenue aside, it was a strong quarter for the company with a significant improvement in its gross margin and an impressive beat of analysts' EPS estimates.
The stock is up 39.6% since reporting and currently trades at $44.
Read our full, actionable report on Amkor here, it's free.
Amtech (NASDAQ:ASYS)
Focusing on the silicon carbide and power semiconductor sectors, Amtech Systems (NASDAQ:ASYS) produces the machinery and related chemicals needed for manufacturing semiconductors.
Amtech reported revenues of $25.43 million, down 23.6% year on year, surpassing analysts' expectations by 8.2%. Taking a step back, it was a mixed quarter for the company with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
Amtech pulled off the biggest analyst estimates beat among its peers. The stock is up 24.6% since reporting and currently trades at $6.18.
Read our full, actionable report on Amtech here, it's free.
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