Onto Innovation Inc (ONTO) Q3 2024 Earnings Call Highlights: Record Revenue and Strategic ...

GuruFocus.com11-02

Revenue: $252 million, up 4% from Q2 and 22% year-over-year. Gross Margin: 55%, at the high end of guidance, improved by over 300 basis points since the beginning of the year. Operating Margin: 28% of...

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overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nOnto Innovation Inc (ONTO) Q3 2024 Earnings Call Highlights: Record Revenue and Strategic ...\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-11-02 21:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/onto-innovation-inc-onto-q3-130029188.html><strong>GuruFocus.com</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Revenue: $252 million, up 4% from Q2 and 22% year-over-year.\nGross Margin: 55%, at the high end of guidance, improved by over 300 basis points since the beginning of the year.\nOperating Margin: 28% of...</p>\n\n<a href=\"https://finance.yahoo.com/news/onto-innovation-inc-onto-q3-130029188.html\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ONTO","symbol_name":"Onto Innovation Inc.","start_time":0,"source_url":"https://finance.yahoo.com/news/onto-innovation-inc-onto-q3-130029188.html","article_id":"2480173829","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/hbjD.wnsiWC.5uozyRGpow--~B/aD04ODt3PTIyMDthcHBpZD15dGFjaHlvbg--/https://media.zenfs.com/en/us.finance.gurufocus/3f2479b2de548d0a0bde939cd39960a5"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2480173829","pubTimestamp":1730552429,"columns":[],"sourceInfo":{"source_id":"yahoofinance","name":"雅虎金融"},"weMediaInfo":null,"summary":"Revenue: $252 million, up 4% from Q2 and 22% year-over-year.Gross Margin: 55%, at the high end of guidance, improved by over 300 basis points since the beginning of the year.Operating Margin: 28% of revenue, improved by approximately 300 basis points since the start of the year.Operating Cash Flow: $67 million, representing a 27% yield, more than doubling from the same period last year.Net Income: 26% of revenue, supported by favorable investment income.EPS: $1.34, up 2% sequentially and 40% year-over-year.Cash and Short-term Investments: $855 million at the end of Q3.Inventory: $308 million, down $12 million from Q2, with further reduction expected in Q4.Specialty Devices and Advanced Packaging Revenue: $161 million, representing 64% of total revenue.Software and Services Revenue: $49 million, increased 5% over Q2, representing 19% of total revenue.Onto Innovation Inc  is on track to nearly double its inspection revenue for the calendar year, driven by strong demand in AI packaging an","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":["earning"],"viewcount":null,"language":"en","relate_stocks":{"ONTO":"Onto Innovation Inc."},"translate_title":"Onto Innovation Inc(ONTO)2024年第三季度收益看涨期权亮点：创纪录的收入和战略……","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ONTO":1},"content_text":"Revenue: $252 million, up 4% from Q2 and 22% year-over-year.\nGross Margin: 55%, at the high end of guidance, improved by over 300 basis points since the beginning of the year.\nOperating Margin: 28% of revenue, improved by approximately 300 basis points since the start of the year.\nOperating Cash Flow: $67 million, representing a 27% yield, more than doubling from the same period last year.\nNet Income: 26% of revenue, supported by favorable investment income.\nEPS: $1.34, up 2% sequentially and 40% year-over-year.\nCash and Short-term Investments: $855 million at the end of Q3.\nInventory: $308 million, down $12 million from Q2, with further reduction expected in Q4.\nSpecialty Devices and Advanced Packaging Revenue: $161 million, representing 64% of total revenue.\nAdvanced Nodes Revenue: $42 million, increased 32% over Q2, representing 17% of total revenue.\nSoftware and Services Revenue: $49 million, increased 5% over Q2, representing 19% of total revenue.\n\n\nWarning! GuruFocus has detected 2 Warning Sign with ONTO.\n\nRelease Date: October 31, 2024\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.\n Positive Points \n\nOnto Innovation Inc (NYSE:ONTO) achieved a record quarterly revenue of $252 million, marking a 22% increase compared to the previous year.\nThe company improved its gross margin to 54.5% and operating margin to 28%, contributing to a record cash generation from operations of $67 million.\nOnto Innovation Inc (NYSE:ONTO) is on track to nearly double its inspection revenue for the calendar year, driven by strong demand in AI packaging and advanced packaging markets.\nThe company announced strategic acquisitions, including Luna Instruments and the lithography business from KIC and Sofa, expected to be accretive to earnings within 12 months and generate up to $100 million in annual revenue in the next three years.\nOnto Innovation Inc (NYSE:ONTO) reported strong growth in advanced nodes, logic, DRAM, and NAND markets, with a significant increase in film metrology expected to grow by over 50% compared to 2023.\n\n Negative Points \n\nThe fourth quarter outlook was negatively impacted by over $10 million in JetStep lithography pushouts due to customers' capacity needs.\nOperating expenses exceeded the high end of guidance due to accelerated R&D investments, impacting the company's cost structure.\nThere is uncertainty regarding the rescheduling of the $10 million lithography delay, which was customer-driven.\nThe high bandwidth memory (HBM) market remains muted, with no clear visibility on when capacity expansions will occur.\nDespite strong demand, the company faces challenges in aligning its supply chain cost reductions due to existing inventory levels.\n\n Q & A Highlights \nQ: What is the timing for TSMC's COOPS footprint expansion, and how confident are you in Onto's revenue growth in the first half of next year? A: We are highly confident in revenue growth moving into the first half of next year, driven by gate-all-around and capacity expansions supporting enterprise servers and HBM growth. TSMC has been aggressive in adding capacity, and we expect a significant increase in the fourth quarter, with strong demand continuing into the first half.\nQ: Can you provide more details on the $10 million lithography delay and its rescheduling? A: The delay was customer-driven based on their needs, and the tools are ready to go. However, the rescheduling is still under discussion.\nQ: How confident are you in Onto's ability to outgrow WFE in 2025, given the high process control intensity? A: We are highly confident in outperforming WFE growth, expected to be in the 5-10% range. Increased process control intensity, especially in AI packaging, is driving this confidence, with customers collaborating with us to find new solutions.\nQ: How is the visibility on volume purchase agreements for gate-all-around nodes, and has it changed? A: Our position remains strong, with no major changes in visibility. We continue to work off the volume purchase agreements, and our backlog is strengthening.\nQ: What is the outlook for the power semiconductor market, and how does it relate to the current downturn in the auto market? A: The focus is on driving higher yields, especially with wafer transitions, which require better process control. This focus on yield improvement is sustaining our strong inspection revenues, despite the broader auto market downturn.\nFor the complete transcript of the earnings call, please refer to the full earnings call transcript.This article first appeared on \nGuruFocus.","kind":"highlight","is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.3","shortVersion":"4.29.3","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2480173829"}