Core Viewpoint - ACM Research, Inc. (ACMR) has gained attention as one of the most searched stocks, indicating potential interest from investors and analysts regarding its future performance [1]. Earnings Estimates - For the current fiscal year, the consensus earnings estimate is $1.93, reflecting an increase of +18.4% from the previous year, with no changes in the estimate over the last 30 days [3]. - The expected earnings for the current quarter are $0.21 per share, which represents a significant decline of -51.2% year-over-year, with the estimate remaining unchanged [5]. - For the next fiscal year, the consensus earnings estimate is $1.80, indicating a decrease of -6.7% compared to the previous year, also unchanged over the past month [6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $178.97 million, showing a year-over-year growth of +5.1%. For the current and next fiscal years, the revenue estimates are $737.72 million and $910.88 million, indicating growth rates of +32.3% and +23.5%, respectively [15]. Recent Performance - In the last reported quarter, ACM Research achieved revenues of $203.98 million, marking a year-over-year increase of +21%. The earnings per share (EPS) for this period was $0.63, compared to $0.57 a year ago, with a revenue surprise of +6.26% and an EPS surprise of +125% [16]. Valuation Metrics - ACM Research is graded A in the Zacks Value Style Score, suggesting that it is trading at a discount compared to its peers, which is a positive indicator for potential investment [19]. Market Performance - Over the past month, ACM Research shares have declined by -20.7%, contrasting with the Zacks S&P 500 composite's -0.7% change and the Zacks Semiconductor Equipment - Material Services industry's loss of -12.4% [12]. Analyst Ratings - The Zacks Rank for ACM Research is 2 (Buy), indicating a favorable outlook based on recent changes in earnings estimates and other related factors [13][20].

Group 1 - ACM Research, Inc. (ACMR) has experienced significant selling pressure, resulting in a 15.6% decline in stock price over the past four weeks, but analysts anticipate better earnings than previously predicted [1] - The stock is currently in oversold territory, indicated by a Relative Strength Index (RSI) reading of 27.96, suggesting a potential trend reversal [5][7] - There has been a 21.7% increase in consensus EPS estimates over the last 30 days among sell-side analysts, indicating a positive outlook for the company's earnings [7] Group 2 - ACMR holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the potential for a turnaround [8]

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on ACM Research, Inc. (ACMR), and suggests that while the average brokerage recommendation (ABR) indicates a strong buy, investors should be cautious and validate this with other tools like the Zacks Rank [1][2][12]. Group 1: Brokerage Recommendations - ACM Research has an average brokerage recommendation (ABR) of 1.25, indicating a position between Strong Buy and Buy, with 66.7% of recommendations being Strong Buy and 33.3% being Buy [2]. - Despite the positive ABR, studies indicate that brokerage recommendations often fail to guide investors effectively towards stocks with high price appreciation potential [3][8]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, often issuing five "Strong Buy" recommendations for every "Strong Sell" [4][8]. Group 2: Zacks Rank Comparison - The Zacks Rank is a proprietary stock rating tool that categorizes stocks based on earnings estimate revisions, providing a more reliable indicator of near-term price performance compared to the ABR [6][9]. - The Zacks Rank is displayed in whole numbers (1 to 5) and is updated more frequently than the ABR, which may not reflect the most current information [7][10]. - For ACM Research, the Zacks Consensus Estimate for the current year remains unchanged at $1.63, leading to a Zacks Rank of 3 (Hold), suggesting a cautious approach despite the positive ABR [11][12].

Financial Performance - Revenue for Q3 2024 reached $203,976,000, a 21% increase from $168,569,000 in Q3 2023[16] - Gross profit for Q3 2024 was $104,834,000, compared to $88,514,000 in Q3 2023, reflecting an 18% growth[16] - Net income attributable to ACM Research, Inc. for Q3 2024 was $30,904,000, up from $25,679,000 in Q3 2023, representing a 20% increase[16] - Basic net income per share for Q3 2024 was $0.49, up from $0.43 in Q3 2023, a 14% increase[16] - Net income for the nine months ended September 30, 2024, was $92,163,000, an increase from $73,554,000 for the same period in 2023, representing a growth of approximately 25.3%[25] - For the three months ended September 30, 2024, net income was $38.672 million, compared to $30.994 million for the same period in 2023, representing a 24.5% increase[63] - The company reported a foreign currency translation adjustment of $17,089,000 in Q3 2024, compared to $4,015,000 in Q3 2023[16] Assets and Liabilities - Total current assets increased to $1,445,314 thousand as of September 30, 2024, up from $1,176,110 thousand at December 31, 2023, representing a growth of approximately 22.8%[13] - Total assets reached $1,794,175 thousand, up from $1,490,908 thousand, marking an increase of 20.4%[14] - Total liabilities grew to $725,092 thousand, compared to $564,746 thousand, which is an increase of 28.4%[14] - Stockholders' equity increased to $888,166 thousand from $767,390 thousand, representing a growth of 15.7%[14] - Current liabilities totaled $610,035 thousand, up from $500,659 thousand, indicating a rise of 21.8%[14] - Long-term borrowings increased to $106,069 thousand from $53,952 thousand, reflecting a growth of 96.8%[14] Cash Flow and Investments - Cash provided by operating activities for the nine months ended September 30, 2024, was $63,855,000, compared to cash used in operating activities of $(36,970,000) for the same period in 2023[25] - The company had net cash provided by financing activities of $77,025,000 for the nine months ended September 30, 2024, compared to $7,013,000 for the same period in 2023, indicating a substantial increase[26] - Cash, cash equivalents, and restricted cash at the end of the period on September 30, 2024, totaled $335,254,000, compared to $207,661,000 at the end of the same period in 2023, marking an increase of approximately 61.5%[27] - The company received net proceeds of RMB 22,478 ($3,167) from the Nuode Asset Fund during the three months ended September 30, 2024[116] Expenses - Operating expenses for Q3 2024 totaled $60,650,000, a 10% increase from $55,341,000 in Q3 2023[16] - Research and development expenses increased to $27,837,000 in Q3 2024 from $26,151,000 in Q3 2023, indicating a 6% rise[16] - Stock-based compensation for the nine months ended September 30, 2024, was $40,792,000, significantly higher than $14,666,000 for the same period in 2023, reflecting an increase of approximately 178.5%[25] - The company recorded an income tax expense of $17,712,000 for the nine months ended September 30, 2024, compared to $11,235,000 for the same period in 2023, reflecting an increase of approximately 57.7%[153] Inventory and Receivables - Accounts receivable rose to $370,589 thousand, compared to $283,186 thousand at the end of 2023, indicating a 30.8% increase[13] - Inventories increased to $628,720 thousand from $545,395 thousand, reflecting a growth of 15.3%[13] - Total inventory increased to $628,720 thousand as of September 30, 2024, up from $545,395 thousand at December 31, 2023, driven by a rise in finished goods inventory[77] - Finished goods inventory value increased by $70,030 thousand, reflecting higher first-tools under evaluation by customers[79] Shareholder Information - The weighted average shares of common stock outstanding for Q3 2024 were 62,500,903, compared to 60,219,218 in Q3 2023[16] - During the nine months ended September 30, 2024, ACM issued 1,488,347 shares of Class A common stock upon option exercises, compared to 919,448 shares for the same period in 2023, representing a 62% increase[128] - As of September 30, 2024, the number of shares of Class A common stock issued and outstanding was 57,524,519, up from 56,036,172 on December 31, 2023, marking an increase of 2.6%[129] Strategic Developments - The company emphasizes that its operations in mainland China are conducted without using a variable interest entity, ensuring compliance with local regulations[5] - ACM Shanghai completed the purchase of additional equity interest in Ninebell for $16,737,000 on October 21, 2024, increasing its ownership to 36.4%[172] - The company acquired a commercial facility in Hillsboro, Oregon, for $7.75 million on October 1, 2024, aimed at expanding R&D and demonstration capabilities in the U.S. market[171] - ACM Research plans to offer up to 43.6 million ordinary shares in a private offering, which could generate gross proceeds of up to RMB 4.5 billion ($642.2 million) if fully consummated[189][190]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 was $204 million, an increase of 21% year-over-year [7][36] - Year-to-date revenue for the first nine months was $558.6 million, up 44% [8] - Gross margin for Q3 was 51.6%, slightly down from 52.9% in the previous year, but still above the long-term target of 40% to 45% [37] - Operating income increased to $56.1 million, compared to $43.8 million in the prior year [39] - Net income attributable to ACM Research was $42.4 million, up from $37.6 million [40] Business Line Data and Key Metrics Changes - Revenue from single wafer cleaning, Tahoe, and semi-critical cleaning products grew 22% in Q3, representing 79% of total revenue [9][36] - Revenue from ACP furnace and other technologies increased by 36% in Q3, accounting for 17% of total revenue [19][36] - Revenue from advanced packaging declined by 21% in Q3 but was up 3% year-to-date, representing 4% of total revenue [21][36] Market Data and Key Metrics Changes - The global total available market (TAM) for cleaning is estimated to be close to $6 billion, with ACM products covering over 90% of all cleaning process steps in memory and logic manufacturing [9] - The middle and low temperature SPM market represents over 80% of the SPM market, indicating a significant opportunity for ACM's Tahoe product [17] Company Strategy and Development Direction - ACM aims to expand its market share in China while also increasing its presence in international markets, targeting to generate half of its revenue from outside China in the long term [34] - The company is focused on innovation, with the Ultra C Tahoe product positioned to meet the environmental demands of semiconductor manufacturing while enhancing production capabilities [15][16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued high demand for wafer fabrication equipment (WFE) in China, driven by ongoing investments in memory and logic manufacturing [34][49] - The company raised its 2024 revenue outlook to a range of $725 million to $745 million, reflecting strong shipment activity [32] Other Important Information - Cash and cash equivalents at the end of Q3 were approximately $369 million, with positive cash flow from operations of $11.9 million for the quarter [41] - The company is expanding its facilities in both China and the US to support growth and customer engagement [31] Q&A Session Summary Question: Coverage of 3D NAND applications - Management indicated that while ACM covers almost 90% of typical process cleaning, they are still qualifying some processes for 3D NAND applications [44][46] Question: Future of WFE spending in China - Management expects WFE spending in China to remain strong, with potential for slight fluctuations but overall positive growth anticipated [48][49] Question: Gross margin expectations - Management confirmed that while gross margins are expected to return to the target range of 40% to 45%, they remain confident in maintaining healthy margins due to product mix and backlog [52][53] Question: Sales outside of China - Management indicated that they expect to see growth in sales outside of China, particularly as they engage with global customers and expand their product offerings [54][56] Question: Advanced packaging market trends - Management noted that while the advanced packaging market in China has slowed, they anticipate a gradual recovery and increased spending in the coming quarters [67]

Supplemental Investor Presentation Earnings Release – Third Quarter 2024 November 7, 2024 Forward-Looking Statements. Certain statements contained in this presentation are not historical facts and may be forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "plans," "expects," "believes," "anticipates," "designed," and similar words are intended to identify forward-looking statements. Forward-looking statements are based on ACM management's curr ...

ACM Research, Inc. (ACMR) came out with quarterly earnings of $0.63 per share, beating the Zacks Consensus Estimate of $0.28 per share. This compares to earnings of $0.57 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 125%. A quarter ago, it was expected that this company would post earnings of $0.30 per share when it actually produced earnings of $0.55, delivering a surprise of 83.33%.Over the last four quarters, the company ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION | --- | --- | --- | --- | --- | --- | |---------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------|----------|----------------------------|----------|-----------------------| | | | | | | | | | Washington, D.C. 20549 | | | | | | | FORM 8-K | | | | | | | CURRENT REPORT | | | | | | | Pursuant to Section 13 or 15(d) of the Securities Exchange Date of ...

ACM Research (ACMR) is scheduled to report third-quarter 2024 results before market open on Nov. 7. For the third quarter, the Zacks Consensus Estimate for revenues is pegged at $192 million, indicating growth of 13.9% from the year-ago quarter's reported value. The Zacks Consensus Estimate for earnings is pegged at 28 cents per share, suggesting a fall of 50.9% from the year-ago figure. The figure has been unchanged over the past 60 days. ACM Research's earnings beat the Zacks Consensus Estimate in each of ...

In the latest trading session, ACM Research, Inc. (ACMR) closed at $19.69, marking a +0.87% move from the previous day. The stock's change was more than the S&P 500's daily gain of 0.27%. At the same time, the Dow added 0.65%, and the tech-heavy Nasdaq gained 0.26%. Heading into today, shares of the company had gained 0.15% over the past month, lagging the Computer and Technology sector's gain of 2.21% and the S&P 500's gain of 2% in that time. The investment community will be paying close attention to the ...