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Advanced Energy Q3 revenue beats on record semiconductor and data center computing sales

By Reuters News


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


Reuters Recommended Reads

  • Nov 2 - Lumentum Q1 revenue slightly beats estimates on pump laser demand

  • Nov 2 - IDEXX raises forecast, betting diagnostics can offset weak vet visits

  • Oct 30 - S&P Global revises Meta's outlook to 'negative' on AI spending, cash flow worries


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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