Advanced Energy Earnings: What To Look For From AEIS

Manufacturing equipment and systems provider Advanced Energy (NASDAQ:AEIS) will be reporting results this Tuesday after the bell. Here’s what investors should know.

Advanced Energy beat analysts’ revenue expectations by 3.7% last quarter, reporting revenues of $404.6 million, up 23.6% year on year. It was an exceptional quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and an impressive beat of analysts’ EBITDA estimates.

Is Advanced Energy a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Advanced Energy’s revenue to grow 15.2% year on year to $420.5 million, a reversal from the 12.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.31 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Advanced Energy has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Advanced Energy’s peers in the electronic components segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Bel Fuse delivered year-on-year revenue growth of 26.3%, beating analysts’ expectations by 10.1%, and Littelfuse reported revenues up 9.8%, topping estimates by 6.8%. Bel Fuse traded up 18.8% following the results while Littelfuse was also up 9.1%.

Read our full analysis of Bel Fuse’s results here and Littelfuse’s results here.

Investors in the electronic components segment have had steady hands going into earnings, with share prices flat over the last month. Advanced Energy is down 2.7% during the same time and is heading into earnings with an average analyst price target of $130.80 (compared to the current share price of $132.98).

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