Semiconductor equipment supplier ACM Research on Tuesday smashed Wall Street's earnings target for the third quarter on in-line sales. But ACMR stock seesawed after the company gave disappointing guidance.
The Fremont, Calif.-based company earned an adjusted 57 cents a share on sales of $168.6 million in the September quarter. Analysts polled by FactSet had expected earnings of 34 cents a share on sales of $169 million. On a year-over-year basis, ACM Research earnings increased 36% while sales rose 26%.
On Oct. 27, the semiconductor wafer cleaning specialist reported disappointing preliminary revenue for the third quarter. ACM Research said it expected to report $165 million to $168 million in revenue, which was below the analyst consensus estimate of $173.7 million.
"We are encouraged by sustained investments in mature node capacity by our China-based customers and growing demand for our multi-product portfolio," Chief Executive David Wang said in a news release. "We are making great progress with our increased efforts in Korea which we believe will result in better traction with major local customers."
ACMR Stock Wavers After Report
However, ACM Research narrowed its revenue guidance for the full year to a range of $520 million to $540 million. Its previous guidance range was $515 million to $585 million.
The midpoint of its current sales outlook for the 2023 is $530 million. Analysts were modeling $557 million.
In morning trades on the stock market today, ACMR stock fell as much as 13.6% before rebounding. It ended the day up 5.3% to 15.80.
ACM Research makes of wafer processing solutions for semiconductor and advanced wafer-level packaging applications.
ACMR stock ranks second out of 27 stocks in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 94 out of 99.
Further, ACMR stock is on the IBD Tech Leaders list.
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