Axcelis Technologies stock sinks 6% on weak guidance

Published 10/02/2025, 22:20
Axcelis Technologies stock sinks 6% on weak guidance

BEVERLY, Mass. - Axcelis Technologies, Inc. (NASDAQ:ACLS) reported better-than-expected fourth quarter results but saw its stock tumble 6.8% after hours due to disappointing guidance for the first quarter of 2025.

The semiconductor equipment maker posted adjusted earnings per share of $1.54 for Q4, surpassing analyst estimates of $1.25. Revenue came in at $252.4 million, also beating the consensus forecast of $244.97 million. Compared to the same quarter last year, revenue decreased from $310.3 million.

However, Axcelis’ outlook for Q1 2025 fell well short of expectations. The company guided for earnings per share of approximately $0.38 on revenue of $185 million. This compares unfavorably to analyst projections of $1.02 EPS and $221.6 million in revenue.

President and CEO Russell Low commented on the near-term outlook, stating, "As we look ahead to 2025, we anticipate a near term cyclical digestion period, as customers absorb the robust investments they’ve made into mature node capacity over the past few years - particularly in China."

For the full year 2024, Axcelis reported revenue of $1.02 billion, down from $1.13 billion in 2023. Net income was $201 million with diluted EPS of $6.15, compared to $246.3 million and $7.43 per share in the prior year.

Despite the revenue decline, the company improved its gross margin to 44.7% in 2024 from 43.5% in 2023. Axcelis ended the year with $123.5 million in cash and cash equivalents.

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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