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Advanced Energy Industries Q1 Earnings Beat Estimates, Revenues Up Y/Y
AEISAdvanced Energy(AEIS) ZACKS·2025-05-01 16:15

Core Insights - Advanced Energy Industries (AEIS) reported non-GAAP earnings of 1.23pershareforQ12025,exceedingtheZacksConsensusEstimateby18.271.23 per share for Q1 2025, exceeding the Zacks Consensus Estimate by 18.27% and showing a year-over-year increase of 112.1% [1] - Revenues reached 404.6 million, surpassing the Zacks Consensus Estimate by 5.1% and increasing 23.5% year over year, driven by growth in data center programs and semiconductor strength [1][2] Revenue Breakdown - Semiconductor Equipment generated 222.20million,accountingfor54.9222.20 million, accounting for 54.9% of total revenues, with a year-over-year increase of 23.5% and exceeding the Zacks Consensus Estimate by 0.96% [3] - Data Center Computing revenues were 96.2 million, representing 23.8% of total revenues, up 129.6% year over year and beating the consensus mark by 67.99% [6] - Industrial & Medical revenues fell to 64.30million,makingup15.964.30 million, making up 15.9% of total revenues, down 22.9% year over year and lagging the Zacks Consensus Estimate by 18.60% [5] - Telecom & Networking revenues were 21.9 million, accounting for 5.4% of total revenues, down 1.8% year over year but beating the Zacks Consensus Estimate by 5.49% [6] Product Performance - AEIS experienced strong demand for its next-generation products, with over 350 qualification units shipped in Q1, a fivefold increase year over year [4] Operating Results - Non-GAAP gross margin was 37.9%, up 280 basis points year over year, while non-GAAP operating expenses increased by 5.3% to 98.6million,representing24.498.6 million, representing 24.4% of revenues [8] - Non-GAAP operating margin expanded to 14.6%, an increase of 940 basis points year over year [8] Financial Position - As of March 31, 2025, cash and cash equivalents stood at 723 million, slightly up from 722millionattheendof2024[9]−Cashflowfromoperationswas722 million at the end of 2024 [9] - Cash flow from operations was 29.2 million in Q1 2025, down from 82.7millioninQ42024[9]Guidance−ForQ22025,AEISexpectsnon−GAAPearningsof82.7 million in Q4 2024 [9] Guidance - For Q2 2025, AEIS expects non-GAAP earnings of 1.30 per share (+/- 25 cents) and revenues of 420million(+/−420 million (+/- 20 million) [10] Market Outlook - Despite strong demand in semiconductor and data center markets, weakness in Industrial, Medical, and Telecom sectors may impact AEIS' overall revenue [11]