Advanced Energy (AEIS) Reports Q2: Everything You Need To Know Ahead Of Earnings

Manufacturing equipment and systems provider Advanced Energy (NASDAQ:AEIS) will be reporting earnings this Monday afternoon. Here’s what you need to know.

Advanced Energy beat analysts’ revenue expectations last quarter, reporting revenues of $511 million, up 26.3% year on year. It was a strong quarter for the company, with EPS guidance for next quarter exceeding analysts’ expectations and revenue guidance for next quarter topping analysts’ expectations.

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

This quarter, the market is expecting Advanced Energy’s revenue to grow 23.1% year on year, improving from the 21% increase it recorded in the same quarter last year.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Advanced Energy has a history of exceeding Wall Street’s expectations.

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. Littelfuse delivered year-on-year revenue growth of 20.4%, beating analysts’ expectations by 5.4%, and Belden reported revenues up 11.6%, in line with consensus estimates. Littelfuse traded up 12.7% following the results while Belden was also up 21.6%.

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

In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the electronic components stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5% on average over the last month. Advanced Energy is down 7.1% during the same time and is heading into earnings with an average analyst price target of $428.73 (compared to the current share price of $289.44).

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