In This Article:
Advanced Energy Industries AEIS reported non-GAAP earnings of $1.23 per share in the first quarter of 2025, beating the Zacks Consensus Estimate by 18.27%. The bottom line jumped 112.1% on a year-over-year basis. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)
Revenues of $404.6 million beat the Zacks Consensus Estimate by 5.1% and increased 23.5% year over year, primarily due to growth in new data center programs and continued strength in semiconductor.
The top-line growth was up 5.1% sequentially, led by strength in Semiconductor and Data Center Computing.
AEIS’ End Market in Detail
Semiconductor Equipment: Revenues (54.9% of total revenues) generated from the market rose 23.5% year over year to $222.20 million. The figure topped the Zacks Consensus Estimate by 0.96%.
Advanced Energy Industries, Inc. Price, Consensus and EPS Surprise
Advanced Energy Industries, Inc. price-consensus-eps-surprise-chart | Advanced Energy Industries, Inc. Quote
AEIS saw accelerating demand for its next-generation eVoS, eVerest, and NavX products, with over 350 qualification units shipped through the first quarter. This marked a fivefold increase year over year and a notable rise from more than 250 units shipped in the prior quarter, reflecting strong customer pull and growing momentum across its target markets.
Industrial & Medical: Revenues (15.9% of the total revenues) from the market fell 22.9% year over year to $64.30 million and lagged the Zacks Consensus Estimate by 18.60%.
Sequentially, revenues declined 16.3%. The decline can be attributed to ongoing channel inventory reduction and lower turns revenues.
AEIS recorded major wins in industrial coating, robotics, therapeutic, and life science applications.
Data Center Computing: Revenues (23.8% of the total revenues) from the market were $96.2 million, up 129.6% year over year. The figure beat the consensus mark by 67.99%.
Sequentially, revenues increased 8.5%. The upside can be attributed to multiple new hyperscale programs that started to ramp up during the quarter.
Telecom & Networking: Revenues (5.4% of the total revenues) generated from the market were $21.9 million, down 1.8% year over year. The figure beat the Zacks Consensus Estimate by 5.49%.
Sequentially, revenues declined 5.2%.
AEIS’ Operating Results
In the first quarter, the non-GAAP gross margin was 37.9%, up 280 basis points (bps) on a year-over-year basis.
Non-GAAP operating expenses were $98.6 million, up 5.3% year over year. As a percentage of revenues, the figure declined 420 bps year over year to 24.4% in the reported quarter.
The non-GAAP operating margin was 14.6%, expanding 940 bps on a year-over-year basis.