Results: Axcelis Technologies, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

As you might know, Axcelis Technologies, Inc. (NASDAQ:ACLS) just kicked off its latest quarterly results with some very strong numbers. It was overall a positive result, with revenues beating expectations by 5.1% to hit US$195m. Axcelis Technologies also reported a statutory profit of US$0.98, which was an impressive 68% above what the analysts had forecast. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the current consensus, from the seven analysts covering Axcelis Technologies, is for revenues of US$786.9m in 2025. This implies a definite 12% reduction in Axcelis Technologies' revenue over the past 12 months. Statutory earnings per share are forecast to crater 32% to US$3.35 in the same period. In the lead-up to this report, the analysts had been modelling revenues of US$753.8m and earnings per share (EPS) of US$2.69 in 2025. So it seems there's been a definite increase in optimism about Axcelis Technologies' future following the latest results, with a sizeable expansion in the earnings per share forecasts in particular.

View our latest analysis for Axcelis Technologies

With these upgrades, we're not surprised to see that the analysts have lifted their price target 18% to US$85.50per share. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Axcelis Technologies analyst has a price target of US$90.00 per share, while the most pessimistic values it at US$81.00. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that revenue is expected to slow, with a forecast annualised decline of 23% by the end of 2025. This indicates a significant reduction from annual growth of 17% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 17% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Axcelis Technologies is expected to lag the wider industry.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards Axcelis Technologies following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Axcelis Technologies analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that Axcelis Technologies is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.