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Cohu (NASDAQ:COHU), Inc., a leading supplier of semiconductor test and inspection handlers, has seen its stock price touch a 52-week low, reaching $15.57, with InvestingPro data showing the stock trading at its Fair Value. The company maintains a strong balance sheet, with a current ratio of 6.27 indicating robust liquidity. This latest price point underscores a challenging period for the company, which has experienced a significant downturn with revenue declining by approximately 37% over the past year. The stock’s performance, with a beta of 1.51 indicating higher-than-market volatility, reflects a broader trend in the semiconductor industry, which has faced headwinds due to supply chain disruptions and fluctuating demand. InvestingPro subscribers have access to 12 additional key insights about Cohu’s financial health and market position. Investors have been closely monitoring Cohu’s financial health and market position, as the stock’s value has contracted by 53.08% over the past year. Despite the decline, management has been actively buying back shares, and the company maintains more cash than debt on its balance sheet. This decline has prompted discussions about the company’s strategy moving forward and the potential for recovery as market conditions evolve. For deeper insights, access the comprehensive Pro Research Report available on InvestingPro.
In other recent news, Cohu Inc. reported its fourth-quarter 2024 earnings, revealing an earnings per share (EPS) of -$0.15, which missed the forecasted -$0.09. The company’s revenue for the quarter was $94.1 million, slightly below the anticipated $95.11 million. Despite these results, Cohu remains optimistic about its strategic expansion into new semiconductor markets, such as memory and silicon carbide power semiconductors, which are expected to drive future growth. The acquisition of Tignis, an AI process control software provider, marks a significant move to enhance its technology portfolio.
Craig-Hallum has lowered its price target for Cohu to $26 from $30, maintaining a Buy rating. This adjustment follows Cohu’s announcement of weaker-than-expected guidance for Q1, attributed to a significant customer delaying orders. Despite growth challenges in its target markets, Cohu’s substantial net cash position is highlighted as a positive factor. Analysts at Craig-Hallum noted that a normalization of business might not occur until 2026.
Looking ahead, Cohu provided guidance for Q1 2025, with expected revenue of $97 million ± $7 million and a gross margin forecast of 44%. The company anticipates significant growth in its software segment, projecting over 50% annual revenue growth over the next three years. These developments reflect Cohu’s efforts to align its products with compute applications and enhance productivity in semiconductor manufacturing.
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