Nucor earnings beat by $0.08, revenue fell short of estimates
Looking further ahead, the analyst's 2030 model for Advanced Energy projects a 9% organic sales compound annual growth rate (CAGR) and an additional $500 million in sales through acquisitions. This is expected to propel the company's sales to $3 billion. With an anticipated 43.5% gross margin, representing a significant improvement from current levels, the model suggests a non-GAAP EPS of $15 by the end of the decade. Investors can track AEIS's progress toward these targets using InvestingPro's real-time metrics and exclusive financial health scores.
In his assessment, Miller anticipates a positive year for Advanced Energy, driven by a surge in AI-related data center sales and a recovery in several of the company's other end markets. The analyst expects these factors, coupled with several design wins and new products, will contribute to market share gains and margin improvements. According to InvestingPro data, the company currently operates with a moderate debt level and maintains strong liquidity, with a current ratio of 4.62. Investors seeking deeper insights can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, which provides detailed analysis of AEIS's financial health and growth prospects.
For the fiscal year 2025, Miller projects a significant increase in Advanced Energy's non-GAAP earnings, expecting a 57% year-over-year growth to $5.63 per diluted share. This forecast is underpinned by the company's strong performance and strategic initiatives. The company's current gross margin stands at 35.4%, with analysts anticipating near-term sales challenges but maintaining profitability forecasts for the current year.
Looking further ahead, the analyst's 2030 model for Advanced Energy projects a 9% organic sales compound annual growth rate (CAGR) and an additional $500 million in sales through acquisitions. This is expected to propel the company's sales to $3 billion. With an anticipated 43.5% gross margin, representing a significant improvement from current levels, the model suggests a non-GAAP EPS of $15 by the end of the decade. Investors can track AEIS's progress toward these targets using InvestingPro's real-time metrics and exclusive financial health scores.
In his comments, Miller stated, "We see a rebound for Advanced Energy in 2025 driven by continued expected strength in AI-related data center sales, a recovery in some of the firm's other end markets, several design wins and new products driving share gains, and improving margins. As a result, we project non-GAAP 2025 earnings to grow 57% y/y in 2025 to $5.63 per diluted share. AEIS' 2030 model projects a 9% organic Sales CAGR and $500 M in acquisitions driving sales to $3 B which along with 43.5% gross margins result in a 2030 non-GAAP EPS of $15. As such, we are raising our target price from $125 to $135."
In other recent news, Advanced Energy Industries (NASDAQ:AEIS) has seen an upgrade from Needham analysts, moving from a Hold to a Buy status with a new price target of $145.00. This upgrade is based on anticipated catalysts expected to positively impact the company over the next 12 months. Advanced Energy's guidance suggests a modest increase in the semiconductor segment, which accounted for 53% of third-quarter revenue, and stability in the Industrial & Medical (TASE:PMCN) sector, which represented 21% of revenue. The Data Center Computing segment, accounting for 22% of revenue, is expected to continue its robust growth.
Other analysts, including Citi's Atif Malik and Baird, have also upgraded Advanced Energy Industries, with price target increases to $138 and $134 respectively. They highlight the company's strong position in the Semiconductor Equipment market and expected revenue growth. KeyBanc Capital Markets maintained an Overweight rating and a $130 price target, acknowledging the company's ambitious targets for the year 2030.
Nova Measuring (NASDAQ:NVMI) Instruments and other semiconductor equipment companies have also seen upgrades by analysts at Citi, indicating a positive shift in sentiment towards these companies. This bullish stance is supported by the expectation that key performance indicators are likely to bottom out in the first half of 2025.
These are the recent developments for Advanced Energy Industries and Nova Measuring Instruments.
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