Advanced Energy Industries Stock Tanks On Q2 Earnings Miss; Q3 Outlook Lags Consensus

Advanced Energy Industries Stock Tanks On Q2 Earnings Miss; Q3 Outlook Lags Consensus
  • Advanced Energy Industries Inc AEIS reported second-quarter FY21 sales growth of 6.3% year-on-year to $361.3 million, missing the analyst consensus of $362.14 million.
  • Revenues from Semiconductor Equipment grew 21.5% Y/Y to $176.7 million, Industrial and Medical increased 17.4% Y/Y to $83.2 million, 
  • Data Center Computing declined 16.6% Y/Y to $69.5 million, and Telecom and Networking decreased 20.5% Y/Y to $31.99 million.
  • The non-GAAP gross margin contracted 70 bps to 38%, and the non-GAAP operating margin contracted 70 bps to 15.1%.
  • Non-GAAP EPS of $1.25 missed the analyst consensus of $1.27.
  • Advanced Energy generated $33.8 million in operating cash flow, repurchased stock worth $6.5 million, and paid $3.9 million in dividends.
  • On Jul. 29, the board increased the company's stock repurchase authorization to $200 million.
  • Although the near-term supply chain and operating environment remain challenging, demand continues to strengthen across all its markets, and it has solid visibility into 2022, CEO Steve Kelley stated. 
  • Outlook: Advanced Energy sees Q3 revenue of $325 million - $355 million below the analyst consensus of $377.84 million.
  • It sees non-GAAP EPS between $0.60-$1.00 below the analyst consensus of $1.40.
  • Price action: AEIS shares traded lower by 11.4% at $91.14 on the last check Wednesday.

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