A bottom-line beat in its inaugural quarter of 2025 was the factor that drove Axcelis Technologies‘s (ACLS -2.04%) share price higher over the trailing five trading days. The semiconductor equipment specialist enjoyed a 10% gain over the course of the week, according to data compiled by S&P Global Market Intelligence.
Two declines and a beat
Before market open Tuesday, Axcelis unveiled those first-quarter metrics. They showed that revenue for the company was $192.6 million, which was down substantially from the more than $252 million it earned in the same period of 2024.
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The same was true of non-GAAP (adjusted) net income; this tumbled to $33.8 million ($1.04 per share) from the year-ago profit of $55.2 million.
This meant a mixed quarter for Axcelis despite the drops. Analysts following the company’s fortunes were modeling a much higher revenue number of $221.6 million. Yet they only figured adjusted earnings would come in at $1.00 per share.
Axcelis certainly faced its share of challenges during the period. It quoted CEO Russell Low as saying that his team produced “strong profitability despite a moderation in customer investments and a more uncertain broader economic backdrop.”
Prosperous times ahead?
It’s accepted wisdom that stocks trade on future potential and not trailing results. This was the real dynamic behind Axcelis’ share price rise during the week, as it proffered encouraging bottom-line guidance.
The company feels it will earn roughly $185 million on the top line this current (second) quarter and net $0.73 per share in adjusted net income. Analysts are modeling a slightly higher revenue number of more than $189 million. However, their collective estimate for bottom-line adjusted profitability is only $0.50 per share.
The semiconductor space is quite up and down these days, particularly given the wearying trade war we currently have to endure. But this company clearly knows how to make a buck, and I’m convinced it’ll survive and even prosper; I consider it a fine buy candidate.
Eric Volkman 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.