Onto Innovation Inc. (ONTO) recently inked a $69 million volume purchase deal with a top DRAM manufacturer. The deal spans ONTO’s rich portfolio of common films, optical critical dimension and integrated metrology solutions. Apart from this, the company announced key advancements in its product suite for 3D interconnect process control, unveiling the 3Di technology on the Dragonfly G3 system and the new EchoScan system.ONTO’s relentless efforts to stay on top of the game with lucrative deal wins and signifi ...

Onto Innovation (ONTO) closed the latest trading day at $193.56, indicating a +0.61% change from the previous session's end. The stock's change was more than the S&P 500's daily loss of 1.11%. Meanwhile, the Dow lost 0.42%, and the Nasdaq, a tech-heavy index, lost 1.89%.Prior to today's trading, shares of the maker of semiconductor manufacturing equipment had gained 13.85% over the past month. This has outpaced the Computer and Technology sector's gain of 1.83% and the S&P 500's loss of 1.7% in that time.Ma ...

Core Viewpoint - The article discusses the reliability of brokerage recommendations, particularly focusing on Onto Innovation, and emphasizes the importance of using independent research tools like the Zacks Rank for making investment decisions [1][11]. Brokerage Recommendations - Onto Innovation has an average brokerage recommendation (ABR) of 1.14, indicating a strong buy to buy sentiment, with 85.7% of recommendations being Strong Buy and 14.3% being Buy [12]. - Brokerage analysts tend to exhibit a strong positive bias in their recommendations, often leading to an overestimation of stock performance [2][6]. Zacks Rank vs. ABR - The Zacks Rank is a quantitative model based on earnings estimate revisions, providing a more reliable indicator of near-term stock performance compared to the ABR, which is solely based on brokerage recommendations [4][5]. - The Zacks Rank is timely and reflects the latest earnings estimates, while the ABR may not always be up-to-date [8]. Onto Innovation's Earnings Estimates - The Zacks Consensus Estimate for Onto Innovation's earnings for the current year is $5.22, which has remained unchanged over the past month, suggesting stable analyst views on the company's earnings prospects [9]. - Due to the unchanged consensus estimate and other factors, Onto Innovation holds a Zacks Rank of 3 (Hold), indicating a cautious approach despite the positive ABR [10].

If you like to see more ideas, please subscribe to the premium service "Value in Corporate Events" here and try the free trial. In this service we cover major earnings events, M&A, IPOs and other significant corporate events with actionable ideas. Furthermore, we provide coverage of situations and names on request!Over the summer, I felt that rosy prospects for Onto Innovation (NYSE: ONTO ) were aggressively priced into the stock. The semiconductor process control company delivers on better yields, performa ...

Onto Innovation Inc. (ONTO) reported third-quarter 2024 earnings of $1.34 per share, which beat the Zacks Consensus Estimate by 2.3%. The bottom line compared favorably with the prior-year quarter's 96 cents.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.Revenues of $252 million beat the Zacks Consensus Estimate by 0.7%. The top line expanded 21.7% year over year, driven by advanced nodes recovery and steady growth in advanced packaging technologies, which are critical in supportin ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 reached $252 million, a 4% increase from Q2 and a 22% increase year-over-year, setting a new quarterly record for inspection [5][15] - Gross margin improved to 54.5%, and operating margin increased to 28%, resulting in record cash generation from operations of $67 million [5][15] - EPS for Q3 increased 2% sequentially to $1.34 and up 40% compared to the prior year [15] Business Line Data and Key Metrics Changes - Specialty devices and advanced packaging remained the largest market, generating $161 million, which is 64% of total revenue, though it saw a slight decline from Q2 [15] - Advanced nodes revenue was $42 million, a 32% increase over Q2, representing 17% of total revenue [15] - Software and services revenue reached $49 million, up 5% from Q2, accounting for 19% of total revenue [15] Market Data and Key Metrics Changes - The power devices market set a quarterly record, driven by metrology and inspection process control systems, despite muted end demand [9] - Advanced packaging was highlighted as a significant market for metrology, with expectations for increased volume in logic packaging [7][13] Company Strategy and Development Direction - The company is expanding its core inspection technology through acquisitions, including Lumina Instruments and the lithography business from Kulicke and Soffa, which are expected to enhance product capabilities and generate additional revenue [10][12] - The focus on yield improvements in power semiconductors is expected to sustain record revenue levels into the next year [9][40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in revenue growth moving into the first half of next year, driven by demand in DRAM and gate-all-around expansions [24][25] - The company anticipates another solid year of growth in 2025, supported by new product launches and strong market demand [21][22] Other Important Information - The company ended Q3 with cash and short-term investments of $855 million, with inventory down to $308 million, marking five consecutive quarters of decline [18][64] - The fourth quarter revenue guidance is projected between $253 million and $267 million, with gross margins expected to be between 54% and 55% [66] Q&A Session Summary Question: What is the timing for TSMC's expansion? - Management is highly confident in revenue growth driven by DRAM capacity expansions and gate-all-around opportunities [24][25] Question: What caused the $10 million lithography delay? - The delay was customer-driven based on their needs, and the reschedule is still under discussion [26] Question: How does the company view the HBM capacity additions? - There is some conservatism in HBM expansion, but management expects an increase in capacity to support new logic coming on board [37][39] Question: What is the outlook for power semiconductors? - The focus on yield improvements is driving strong inspection revenues, despite downturns in the auto market [40][44] Question: What is the expected revenue from China and Korea? - The company expects to maintain sales from China in the 10% to 15% range and anticipates growth in Korea driven by DRAM [77][78]

Onto Innovation (ONTO) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.31 per share. This compares to earnings of $0.96 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.29%. A quarter ago, it was expected that this maker of semiconductor manufacturing equipment would post earnings of $1.19 per share when it actually produced earnings of $1.32, delivering a surprise of 10.92%.Ove ...

Financial Performance - Revenue for Q3 2024 reached $252 million, a 21.7% increase from $207.2 million in Q3 2023[2] - Operating income for Q3 2024 was $53 million (GAAP) and $70 million (non-GAAP), compared to $34 million (GAAP) in Q3 2023[2][5] - Net income for Q3 2024 was $53 million (GAAP) and $66 million (non-GAAP), reflecting significant growth from $35.9 million (GAAP) in Q3 2023[2][5] - Revenue for the three months ended September 28, 2024, was $252,210 thousand, representing a 21.7% increase from $207,185 thousand for the same period in 2023[15] - Operating income for the three months ended September 28, 2024, was $53,072 thousand, an increase of 56.1% from $34,006 thousand in the same period last year[15] - Net income for the three months ended September 28, 2024, was $53,051 thousand, compared to $35,886 thousand for the same period in 2023, reflecting a 47.6% increase[15] Earnings and Margins - GAAP gross margin was 54%, while non-GAAP gross margin was 55%, both showing improvement from previous quarters[2] - Gross profit for the three months ended September 28, 2024, was $136,379 thousand, up from $106,852 thousand, resulting in a gross margin of 54% compared to 52% in the prior year[15][16] - The company reported a gross margin as a percentage of revenue of 55% for the three months ended September 28, 2024, compared to 52% for the same period in 2023[16] - Operating margin as a percentage of revenue for the three months ended September 28, 2024, was 21%, up from 16% in the same period last year[17] Earnings Per Share - Diluted earnings per share were $1.07 (GAAP) and $1.34 (non-GAAP), nearing the high end of the guidance range[2][5] - Non-GAAP net income for the three months ended September 28, 2024, was $66,386 thousand, up from $47,613 thousand, with non-GAAP net income per diluted share increasing to $1.34 from $0.96[16][18] - Estimated GAAP net income per diluted share for the fourth quarter of 2024 is projected to be between $1.04 and $1.19[19] Future Outlook - For Q4 2024, the company expects revenue between $253 million and $267 million, with GAAP diluted EPS guidance of $1.04 to $1.19[7] - Non-GAAP diluted EPS for Q4 2024 is projected to be in the range of $1.33 to $1.48[7] Operational Highlights - Record cash from operations amounted to $67 million, representing 27% of total revenue[2] - Revenue from advanced nodes customers grew over 30% sequentially, indicating strong demand in this segment[3] - The Packaging Applications Center of Excellence (PACE) was officially opened to support 2.5D and 3D packaging architectures[3] - Total operating expenses for the three months ended September 28, 2024, were $83,307 thousand, compared to $72,846 thousand in the same period last year, marking a 14.2% increase[15] - The company plans to continue investing in research and development, with R&D expenses for the three months ended September 28, 2024, totaling $28,277 thousand, compared to $26,136 thousand in the prior year[15]

Onto Innovation (ONTO) is set to report earnings for the third quarter of 2024 on Oct. 31, after the closing bell.Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.The Zacks Consensus Estimate for third-quarter earnings per share (EPS) has been steady at $1.31 in the past 60 days, suggesting growth of 36.5% from the year-ago quarter’s figure. The company expects non-GAAP EPS in the $1.25-$1.35 range.The consensus mark for revenues is pegged at $250.5 million, indicating a rise of 20.9 ...

The Computer and Technology group has plenty of great stocks, but investors should always be looking for companies that are outperforming their peers. Onto Innovation (ONTO) is a stock that can certainly grab the attention of many investors, but do its recent returns compare favorably to the sector as a whole? By taking a look at the stock's year-to-date performance in comparison to its Computer and Technology peers, we might be able to answer that question. Onto Innovation is one of 620 individual stocks i ...