Yahoo Finance Unpacking Q1 Earnings: Nova (NASDAQ:NVMI) In The Context Of Other Semiconductor Manufacturing Stocks
The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how Nova (NASDAQ:NVMI) and the rest of the semiconductor manufacturing stocks fared in Q1.
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. Stocks, especially growth stocks where cash flows further in the future are more important to the story, had a good end of 2023. But the beginning of 2024 has seen more volatile stock performance due to mixed inflation data, but semiconductor manufacturing stocks have performed well, with the share prices up 10.3% on average since the previous earnings results.
Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ:NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $141.8 million, up 7.3% year on year, exceeding analysts' expectations by 3.7%. Overall, it was a strong quarter for the company with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
"Our results this quarter exceeded the high end of the guidance we provided in revenue and profit, driven by increased demand for our state-of-the-art portfolio, and supported by a robust operational model," said Gaby Waisman, President and CEO.
Nova achieved the fastest revenue growth of the whole group. The stock is up 14.7% since reporting and currently trades at $208.
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 8.1% since reporting. It currently trades at $956.01.
Is now the time to buy Lam Research? Access our full analysis of the earnings results here, it's free.
Slowest Q1: 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%. It was a weak quarter for the company with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
Interestingly, the stock is up 10.3% since the results and currently trades at $48.85.
Read our full analysis of Kulicke and Soffa's results here.
Teradyne (NASDAQ:TER)
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Teradyne reported revenues of $599.8 million, down 2.9% year on year, surpassing analysts' expectations by 5.2%. Taking a step back, it was a solid quarter for the company with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
The stock is up 49% since reporting and currently trades at $150.
Read our full, actionable report on Teradyne here, it's free.
FormFactor (NASDAQ:FORM)
With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.
FormFactor reported revenues of $168.7 million, flat year on year, surpassing analysts' expectations by 1.7%. Overall, it was a decent quarter for the company with optimistic revenue guidance for the next quarter but a miss of analysts' EPS estimates.
The stock is up 29.4% since reporting and currently trades at $56.91.
Read our full, actionable report on FormFactor here, it's free.
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