Axcelis Technologies gains as Q2 earnings smash estimates

Published 05/08/2025, 14:02
Axcelis Technologies gains as Q2 earnings smash estimates

Investing.com -- Axcelis Technologies, Inc. (NASDAQ:ACLS), a supplier of ion implantation equipment for semiconductor manufacturing, reported second quarter earnings that significantly exceeded analyst expectations, sending shares soaring 7.2% in trading.

The company posted adjusted earnings of $1.13 per share for the quarter ended June 30, 2025, handily beating the analyst consensus of $0.71. Revenue came in at $194.54 million, surpassing the expected $185.94 million, though declining 24.2% compared to $256.51 million in the same quarter last year.

Investors responded enthusiastically to the results, driving the stock up more than 7% despite the YoY revenue decline, as the company demonstrated resilience during what it described as a "cyclical digestion period" in many of its markets. The company’s guidance for the third quarter also impressed, with projected adjusted EPS of approximately $1.00, well above analyst expectations of $0.70.

"Axcelis delivered strong results in the second quarter despite the cyclical digestion period in many of our markets, demonstrating the value we provide our customers and the strength of our team," said President and CEO Russell Low.

The company reported a non-GAAP gross margin of 45.2%, an improvement from 44.3% in the same period last year. Operating margin on a non-GAAP basis was 17.7%, down from 23.3% in the second quarter of 2024.

CFO Jamie Coogan highlighted the company’s financial discipline, stating, "We generated strong profitability and cash flow in the second quarter, reflecting disciplined cost control and favorable mix." The company increased its share repurchase activity to $45 million during the quarter.

Looking ahead, Axcelis expects third quarter revenue of approximately $200 million, suggesting a modest sequential improvement from the second quarter results.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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