Axcelis Technologies (ACLS -7.03%) stock is losing ground Thursday. The semiconductor equipment company’s share price was down 7.3% as of 12:30 p.m. ET, according to data from S&P Global Market Intelligence.
Axcelis published fourth-quarter earnings results after the market closed yesterday and actually delivered sales and earnings performance that beat Wall Street’s expectations. The business posted earnings of $2.15 per share on revenue of $310.29 million, beating the average analyst estimate’s call for a per-share profit of $2.04 on sales of $297.63 million. But despite the Q4 beats, the stock is losing ground because management’s forward guidance has failed to excite investors.
Investors hoping for growth in 2024 may not get it
Axcelis’s revenue grew 16.6% year over year in Q4, and the company closed out the year with a year-end systems backlog of $1.2 billion. But it looks like sales momentum is on track to weaken this year.
For the first quarter of the current fiscal year, Axcelis is guiding for sales to come in at approximately $242 million — down from the $254 million in sales it posted in the prior-year period. For the full year, management expects sales to be roughly in line with the $1.12 billion in sales it recorded in 2023.
What comes next for Axcelis Technologies?
Axcelis credited strong demand for its Purion Power Series family for helping the business achieve record revenue last year. The semiconductor manufacturing equipment specialist closed out the year with sales up 23% annually. Last year’s encouraging sales momentum suggested the business could be poised for a sustained cyclical upswing. However, it looks like overall demand for the company’s systems is set to level off in the near term.
Jumping ahead to 2025, the company expects a return to stronger growth. Management anticipates a recovery for its mature process technology and memory segments, which could pave the way for substantial sales increases over this year’s projected level.
Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
