Why Is ACM Research Stock Soaring Wednesday?

ACM Research, Inc ACMR reported fourth-quarter fiscal 2023 revenues of $170.3 million, beating the analyst consensus of $149.3 million. Revenues jumped 56.9% Y/Y.

ACMR reported an adjusted EPS of $0.43, beating the street view of $0.17. The stock price soared after the results.

Higher revenues were from increasing single wafer cleaning, Tahoe, and semi-critical cleaning equipment sales and strength in advance packaging (excluding ECP), services, and spares.

Total shipments in the quarter were $140 million, down from $197 million Y/Y.

Adjusted gross margin declined by 290 basis points to 46.8%, still beating the 40% – 45% reflected in the ACM’s long-term business model. 

The company held cash and equivalents of $304.5 million as of December 31, 2023.

CEO Dr. David Wang concluded, “As we look ahead to 2024, we expect another year of growth driven by mature node investment in China, new product cycles, development progress with multiple customers for our Track and PECVD tools, and initial revenue contribution from international markets in the U.S., Europe and Korea.”

FY24 Outlook: The company expects revenue of $650 million – $725 million. The analyst consensus stands at $693.06 million. The stock has gained 110% last year.

ACMR Stock Prediction For 2024

ACM Research’s revenue growth in FY23 was 43.44%, reflecting the influence of various factors including the macroeconomic environment, demand for its products and services, and its position relative to competitors. This growth is a critical indicator for investors assessing the company’s future prospects.

Some macro factors that could impact the company's performance in the next year include higher interest rates, progress on reeling in inflation and labor market strength. The Fed's benchmark rate is currently at 5.33%, while PPI recently came in at 0.3%, growing 0.9% from last year. The unemployment rate was most recently reported as 3.7%.

An investor should pay attention to economic conditions to decide whether they think the macro environment is positive or negative for ACM Research stock. For real time economic data and breaking market updates, check out Benzinga Pro. Try it for free.

How does this stack up against ACM Research's peers?

Investors may also want to analyze a stock in comparison to companies with similar products or in similar industries. ACM Research operates in the Information Technology sector. The stock has experienced average annual growth of -12.56% compared to the 4.7% average of its peer companies. This is below the broader sector movement of ACM Research.

Price Action: ACMR shares are trading higher by 14.80% to $25.01 premarket on the last check Wednesday.

Photo by Sharon McCutcheon on Unsplash