Advanced Energy (AEIS) Reports Q3: Everything You Need To Know Ahead Of Earnings

Manufacturing equipment and systems provider Advanced Energy (NASDAQ:AEIS) will be announcing earnings results this Tuesday afternoon. Here’s what to look for.

Advanced Energy beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $441.5 million, up 21% 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’ adjusted operating income estimates.

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

This quarter, analysts are expecting Advanced Energy’s revenue to grow 17.9% year on year to $441 million, a reversal from the 8.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.47 per share.

Analysts covering the company have generally 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 Q3 results, giving us a hint as to what we can expect. Vicor delivered year-on-year revenue growth of 18.5%, beating analysts’ expectations by 15.7%, and Bel Fuse reported revenues up 44.8%, topping estimates by 3.7%. Vicor traded up 30.1% following the results while Bel Fuse was down 2.9%.

Read our full analysis of Vicor’s results here and Bel Fuse’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 up 16.5% during the same time and is heading into earnings with an average analyst price target of $170.50 (compared to the current share price of $205).

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