Axcelis Technologies is the IBD Stock Of The Day as the semiconductor equipment maker nears a buy point after its beat-and-raise earnings report this week. ACLS stock took a breather on Friday after jumping on Thursday.
Late Wednesday, the Beverly, Mass.-based company crushed Wall Street's targets for the second quarter and guided higher for the current quarter and full year.
Axcelis earned $1.32 a share on sales of $221.2 million in the June quarter. Analysts polled by FactSet expected Axcelis to earn 99 cents a share on sales of $211.5 million. On a year-over-year basis, Axcelis earnings soared 140% while sales increased 50%.
For the current quarter, Axcelis predicted earnings of $1.13 a share on sales of $224 million. That's based on the midpoint of its outlook. Analysts had been modeling earnings of $1.07 a share on sales of $216.1 million in the third quarter. In the same quarter last year, Axcelis earned 81 cents a share on sales of $176.7 million.
For the full year, Axcelis forecast revenue greater than $875 million. Wall Street was eyeing 2022 sales of $850.7 million. Last year, the company generated sales of $662.4 million.
ACLS Stock Pulls Back
Axcelis is a leading supplier of ion implantation systems, which provide a critical step in the process of manufacturing integrated circuits.
On the stock market today, ACLS stock dipped 0.5% to 78.18. On Thursday, ACLS stock soared 8.1% after its second-quarter report.
ACLS stock has formed a cup base with a buy point of 83.83, according to IBD MarketSmith charts. However, if it pulls back in the days ahead it could form a handle, which would give it an earlier entry point, based on IBD trading guidelines.
In a positive move, the relative strength line for ACLS stock has been hitting new highs as it outperforms the S&P 500 index. The action is highlighted with a blue dot on a weekly MarketSmith chart.
Axcelis Stock Gets Price-Target Hikes
B. Riley Securities analyst Craig Ellis on Thursday reiterated his buy rating on ACLS stock and upped his price target to 95 from 80.
Stifel analyst Patrick Ho maintained his buy rating on ACLS stock and raised his price target to 93 from 86.
"Despite what we acknowledge are macroeconomic uncertainties, we believe the company is well positioned to grow once again, led by continued fab expansion plans by trailing-edge customers," Ho said in a note to clients Thursday.
Axcelis Technologies' near-term strength is led by its mature technology business, Ho said. Demand for chips using older technology has been fueled by automotive and industrial customers, he said.
ACLS stock is on the IBD 50 list of top-performing growth stocks.
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