Semiconductor equipment supplier Onto Innovation late Tuesday topped Wall Street's targets for the second quarter but offered mixed guidance. Onto stock fell in extended trading.
The Wilmington, Mass.-based company earned an adjusted $1.28 a share on sales of $256.3 million in the June quarter. Analysts polled by FactSet had predicted earnings of $1.27 a share on sales of $241.8 million. On a year-over-year basis, its earnings rose 39% while sales increased 33%.
For the current quarter, the company expects to earn an adjusted $1.32 a share on sales of $250 million. That's based on the midpoint of its outlook. Analysts had predicted earnings of $1.27 a share on sales of $250.4 million in the third quarter.
"Demand for Onto Innovation products continues to be strong," Chief Executive Michael Plisinski said in a news release. "Our team's commitment and alignment to the success of our customers is expanding our opportunities in support of several exciting industry trends including the transition to nanosheet structures, high stack 3D Nand, heterogeneous packaging, and power devices for electric vehicles."
Onto Stock Is On Three IBD Lists
In after-hours trading on the stock market today, Onto stock fell 1.1% to 74. During the regular session Tuesday, it tumbled 12.1% to close at 74.81.
Tuesday was a rough day for semiconductor sector stocks overall after Micron Technology warned of weakening sales and cut its chip gear spending plans.
Onto stock ranks third out of 29 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 96 out of 99. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.
Onto stock is on the IBD 50 list of top-performing growth stocks. It also is on IBD's Sector Leaders and Tech Leaders lists.
Chip Gear Earnings Are Mixed Bag
This earnings season has seen a bunch of semiconductor equipment firms beat second-quarter estimates but miss views with their guidance. They were impacted by chipmakers delaying purchases of new capital equipment amid slowing semiconductor sales.
Semiconductor equipment makers posting such beat-and-miss quarterly reports have included ASML, FormFactor, Kulicke & Soffa Industries, Teradyne and Ultra Clean Holdings.
However, other chip gear firms have delivered beat-and-raise reports for the June quarter. Companies in that camp include Axcelis Technologies, KLA and Lam Research.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
