PDF Solutions stock hits 52-week low at $21.68 amid market challenges

Published 03/03/2025, 21:12
PDF Solutions stock hits 52-week low at $21.68 amid market challenges

In a challenging market environment, PDF Solutions Inc. (NASDAQ:PDFS) stock has touched a 52-week low, reaching a price level of $21.68. According to InvestingPro data, the company maintains strong financial health with a current ratio of 3.4x and more cash than debt on its balance sheet. The company, known for its software and hardware design solutions for manufacturing processes, has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of -36.84%. Despite the challenging environment, the company maintains a healthy gross profit margin of 70% and analysts expect net income growth this year. Investors have shown concern as the stock plummeted to its lowest point in a year, marking a period of underperformance for the tech firm. The current price level presents a critical juncture for PDF Solutions, as market watchers and stakeholders closely monitor its performance and potential recovery strategies. Get access to 13 additional InvestingPro Tips and comprehensive analysis with a subscription.

In other recent news, PDF Solutions announced mixed results for the fourth quarter, revealing earnings per share (EPS) of $0.25, slightly below the analyst estimate of $0.26. However, the company exceeded revenue expectations with $50.1 million, surpassing the forecast of $49.3 million. This marked a 22% increase from the previous year, showcasing robust sales growth despite the earnings miss. For the full year, PDF Solutions reported revenues of $179.5 million, an 8% increase year-over-year, with a strong backlog of $221.4 million indicating a solid pipeline for future revenue. The company also announced a definitive agreement to acquire secureWISE for $130 million, aiming to enhance its analytics software and expand its secure DEX OSAT network. The acquisition is expected to contribute to a full-year 2025 revenue growth rate of 21% to 23% and be slightly accretive to EPS. Analysts from Rosenblatt Securities expressed cautious optimism, noting improved gross margins but highlighting ongoing challenges in certain market segments. PDF Solutions plans to finance the secureWISE acquisition through a mix of cash on hand and $70 million in new bank debt.

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