Advanced Energy Industries (AEIS) Q3 2019 Earnings Prep

in EARNINGS/INVESTING IDEAS by

Advanced Energy Industries, Inc. (NASDAQGS:AEIS) is scheduled to report Q3 earnings results pre-market on November 12, 2019. The company is expected to report earnings of $0.38/share on revenue of $162.0 million. The consensus earnings per share (EPS) of $0.38/share is based on a poll of 5 analysts and represents a significant decline of -63.8% over the same quarter last year when the company reported earnings of $1.05/share.

The revenue forecast of $162.0 million based on a poll of 3 analysts implies a year-over-year (YoY) decline of -6.4%. Last year the company reported $173.1 million in revenue for the quarter.

Expected to report EPS decline of -$0.67/share for Q3, 2019
Metric Expected Prior Year YoY Change
Revenue $162.00 $173.08 -6.4%
EPS $0.38 $1.05 -63.8%

Earnings Call Trends

Historically, management has exceeded analyst expectations 6 out of the last 8 tracked quarters, and missed expectations 2 quarters. What are your expectations from Advanced Energy Industries for this earnings this quarter? Let us know in the comments!

Analyst Expected vs Reported EPS
Quarter Expected Reported Surprise Result
Q2, 2019 $0.34 $0.45 32.4% Beat
Q1, 2019 $0.47 $0.58 22.9% Beat
Q4, 2018 $0.76 $0.73 -3.9% Missed
Q3, 2018 $1.02 $1.05 2.9% Beat
Q2, 2018 $1.36 $1.25 -7.8% Missed
Q1, 2018 $1.32 $1.34 1.4% Beat
Q4, 2017 $1.21 $1.31 8.1% Beat
Q3, 2017 $1.17 $1.19 1.7% Beat

One question we always consider here at the Bankers’ Tribune is how important are earnings reports to Advanced Energy Industries’s stock price performance? It’s more important for some companies than for others. In the following table, we summarize the company’s stock price movements after earnings releases.

Stock Price Performance After Earnings
Report Date Price Day Prior Price Next Day Change % Result
2019-08-05 $54.25 $48.99 -9.7% Decline
2019-05-06 $58.93 $51.45 -12.7% Decline
2019-02-04 $51.85 $49.99 -3.6% Decline
2018-10-29 $44.22 $41.43 -6.3% Decline

The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2019, the stock price reacted by falling by -9.7%.

Fundamentals And Technical Analysis

Advanced Energy Industries is currently trading at $63.23/share, down -0.6% for the day. The company is trading near its 52-week high. The company’s stock price is up 16.6% since the last earnings report and up 3.3% over the previous week.

The current share price implies a price-to-earnings (P/E) multiple of 26.2x and a forward P/E multiple of 32.8x. Advanced Energy Industries’s current share price also implies a price-to-book (P/B) multiple of 3.7x.

The company’s 14 Day Relative Price Index (RSI) of 62.37 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.

The following table summarizes some other key fundamental ratios:

Data as of November 11, 2019
Metric Value
Last Fiscal Period FY2019.Q2
Period End Date June 30, 2019
Stock Price (Current) $63.23
P/E Ratio 26.2x
P/E Ratio (Fwd) 32.8x
PEG Ratio 0.6
Total Debt to Capital (%) 2.2%
Levered Free Cash Flow $62.463 million
Enterprise Value / EBITDA 19.0x

Company Profile: Advanced Energy Industries, Inc.

Advanced Energy Industries, Inc. is a mid-cap stock with a market capitalization of $2.422 billion and a total enterprise value of $2.117 billion. The company operates in the Information Technology sector and Semiconductors & Semiconductor Equipment industry.

Advanced Energy Industries, Inc. designs, manufactures, sells, and supports power conversion, measurement, and control solutions. It offers process power solutions, including direct current (DC), pulsed DC, low frequency alternating current, high voltage, and radio frequency (RF) power supplies, as well as RF matching networks and remote plasma sources for reactive gas applications and RF instrumentation.

The company also provides power control modules and thermal instrumentation products for rapid thermal processing, chemical vapor deposition, crystal growing, and other semiconductor and adjacent thin film applications, as well as in chemical processing, metal and glass manufacturing, and other general industrial power applications; and high voltage products for semiconductor wafer processing and metrology, electrostatic clamping of substrates, scientific instrumentation, mass spectrometry, and analytical X-ray systems for industrial and analytical applications.

In addition, it offers gas detection and monitoring products for the automotive, energy, environmental control, aerospace, medical, and research industries; and MIL-COTS power supplies for radar systems, communications equipment, and test and measurement equipment. Further, the company provides amplifiers, generators, and electrostatic discharge sensors and monitors; electrostatic detection and measurement instrumentation products; and photonic-based measurement and monitoring solutions.

The company also offers repair services, conversions, upgrades, and refurbishments and used equipment to companies. The company offers its products through direct sales force, independent sales representatives, and distributors in North America, Europe, and Asia. Advanced Energy Industries, Inc. has a collaboration agreement with the University of Colorado Boulder.

The company was founded in 1981 and is headquartered in Fort Collins, Colorado.

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