Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales
Overview
Precision power solutions provider's Q3 revenue rose 50% yr/yr, beating analyst expectations
Adjusted EPS for Q3 beat analyst expectations
Company attributes results to record semiconductor and data center computing sales
Outlook
Advanced Energy sees Q4 2026 revenue of $735 mln, plus or minus $25 mln
Company expects Q4 2026 GAAP EPS from continuing operations of $3.30, plus or minus $0.30
Company expects Q4 2026 non-GAAP EPS of $3.90, plus or minus $0.30
Result Drivers
SEMICONDUCTOR DEMAND - Record semiconductor equipment revenue, up 64% yr/yr, drove overall sales growth
DATA CENTER COMPUTING - Data center computing revenue rose 49% yr/yr to a record, contributing to total revenue growth
HIGHER GROSS MARGIN - Co said improved gross margin reflected strategic investments and execution to meet customer demand
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Sales | Beat | $696.4 mln | $644.86 mln (11 Analysts) |
Q3 Adjusted EPS | Beat | $3.65 | $3.04 (12 Analysts) |
Q3 Adjusted Net Income | Beat | $150 mln | $125.41 mln (10 Analysts) |
Q3 Net Income | $115.60 mln | ||
Q3 Gross Margin | 41.5% | ||
Q3 Gross Profit | $289.1 mln | ||
Q3 Operating Income | $143.2 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the electrical components & equipment peer group is "buy"
Wall Street's median 12-month price target for Advanced Energy Industries, Inc. is $410.00, about 84.6% above its October 30 closing price of $222.06
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 26 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)