ACM Research Shares Gain on Narrowed Outlook, Rising Demand

Dow Jones08-07 18:41

Shares of ACM Research rose after the company narrowed its outlook on higher sales and customer demand in the second quarter.

The stock was up 12% at $88.50 in premarket trading Friday. Through the prior close, shares were up 76% this year.

The company, which provides wafer processing for semiconductor companies, raised the lower end of its annual revenue outlook to $1.13 billion to $1.18 billion, from the prior range of $1.08 billion to $1.18 billion.

ACM said overall sales climbed 36% to $292.9 million in the second quarter. That was above Wall Street analysts' estimate of $269.7 million.

Sales were driven by growth in ACM's electrochemical plating and advanced packaging segments, where sales nearly tripled in both businesses.

Customer demand resulted in increased order activity, which is providing increased visibility into the full year, Chief Executive David Wang said.

Profit rose to $89.0 million, or $1.23 a share, from $29.8 million, or 44 cents a share, the year before.

Adjusted earnings were 61 cents a share, ahead of the 42 cents a share that analysts were predicting.

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