- Advanced Energy’s second-quarter sales reached $441.5 million, up 21% from last year, beating the estimate of $421.2 million.
- Semiconductor Equipment net sales were $209.5 million, marking an 11% increase over the prior year but falling short of the $219.9 million estimate.
- Industrial and Medical net sales were $68.6 million, a 13% decline year-over-year, just above the estimated $68 million.
- Data Center Computing net sales surged to $141.6 million, a remarkable 94% increase, exceeding the $113.9 million estimate.
- Telecom and Networking net sales decreased by 11% to $21.8 million, below the $23.3 million estimate.
- Adjusted earnings per share (EPS) from continuing operations were $1.50.
- The adjusted gross margin improved to 38.1% compared to 35.3% last year, nearly hitting the estimate of 38.2%.
- Adjusted net income rose 77% year-over-year to $56.6 million, surpassing the $49.7 million estimate.
- Research and Development (R&D) expenses increased by 13% to $59.0 million, above the estimated $55.2 million.
- Operating income totaled $31.6 million, more than doubling last year’s $13.0 million but trailing the $35.2 million estimate.
- The third-quarter forecast includes an adjusted EPS range of $1.20 to $1.70, against an estimate of $1.25.
- The revenue forecast for the third quarter is between $420 million and $460 million, around the $421.5 million estimate.
- CEO Steve Kelley attributed strong second-quarter results to high customer demand for AI data center solutions.
- Market recommendations include 8 buys, 4 holds, and no sells.
Advanced Energy Industries on Smartkarma
Analysts on Smartkarma are closely covering Advanced Energy Industries, with Baptista Research providing valuable insights. In one report titled “Advanced Energy Industries Ramps Up Plasma Power Efforts—Can It Corner the Semiconductor Market?”, the company’s strong financial performance in the first quarter of 2025 is highlighted. With revenue hitting $405 million, a 24% increase year-over-year, despite a slight 3% sequential decline, the earnings per share exceeded expectations. This indicates a promising growth trajectory, particularly in the Data Center Computing and Semiconductor sectors.
Furthermore, another report by Baptista Research titled “Advanced Energy Industries: The 5 Major Challenges That Can Hinder Growth in 2025! Major Drivers” discusses the company’s fourth quarter and full-year 2024 results, showcasing a robust finish to the year. Notable highlights include Q4 revenue reaching $450 million, an 11% increase sequentially and 3% year-over-year, driven by impressive performance in the semiconductor and data center computing markets. Specifically, the semiconductor revenue saw a significant 15% sequential increase and 19% year-over-year growth, pointing towards positive momentum for Advanced Energy Industries.
A look at Advanced Energy Industries Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Advanced Energy Industries shows a promising long-term outlook. The company scores high in momentum and resilience, indicating strong trends and ability to withstand market challenges. Additionally, scoring moderately well in value and growth, Advanced Energy Industries demonstrates potential for future development and solid fundamentals. While the dividend score is lower, the overall positive scores suggest a favorable overall outlook for the company.
Advanced Energy Industries, Inc. specializes in manufacturing power conversion and control systems for various industrial equipment applications. Their systems play a crucial role in semiconductor, data storage, and flat panel display production processes utilizing gaseous plasmas. With a focus on developing innovative solutions for plasma-based thin film production, Advanced Energy Industries positioned itself as a key player in the industry.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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