Overview

* Onto Innovation ( ONTO ) Q2 revenue rises 5% yr/yr, beating analyst expectations

* Adjusted EPS of $1.25 missed analyst estimates, per LSEG data

* Company had acquired Semilab product lines for $545 mln

Outlook

* Onto Innovation ( ONTO ) expects Q3 revenue between $210 mln and $225 mln

* Company forecasts Q3 gross margin of 53% to 55%

* Onto Innovation ( ONTO ) anticipates Q3 non-GAAP EPS of $0.75 to $0.95

* Company sees Q3 as low revenue point, expects Q4 rebound

Result Drivers

* DRAGONFLY EXPANSION - Expanded Dragonfly 3Di metrology footprint with shipments to over 10 customers for various applications

* DEFECT INSPECTION ADOPTION - Strong adoption of sub-surface defect inspection with over 20 Dragonfly systems shipped for AI packaging

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $253.60 $252.30

Revenue mln mln (7

Analysts

)

Q2 Miss $1.25 $1.27 (7

Adjusted Analysts

EPS )

Q2 EPS $0.69

Q2 Net $33.91

Income mln

Q2 Gross 48.2%

Margin

Q2 $32.25

Operatin mln

g Income

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

* Wall Street's median 12-month price target for Onto Innovation Inc ( ONTO ) is $140.00, about 35.7% above its August 6 closing price of $90.00

* The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)