Overview

* Onto Innovation ( ONTO ) Q3 revenue slightly missed analyst expectations, declining 13.5% yr/yr

* Adjusted EPS for Q3 beats analyst expectations

* Company generated record $83.4 mln cash from operations in Q3

Outlook

* Company expects Q4 revenue between $250 mln and $265 mln

* Onto Innovation ( ONTO ) forecasts Q4 gross margin of 53.5% to 55%

* Company anticipates Q4 GAAP EPS of $0.85 to $1.00

Result Drivers

* DRAGONFLY 3Di TECHNOLOGY - Fully qualified by major HBM customers, supporting AI packaging

* ATLAS G6 SHIPMENTS - Initial shipments to leading logic and memory customers, with more scheduled

* RECORD CASH FROM OPERATIONS - Generated $83.4 mln, representing 185% conversion of non-GAAP net income

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $218.19 $218.54

Revenue Miss* mln mln (7

Analysts

)

Q3 Beat $0.92 $0.87 (7

Adjusted Analysts

EPS )

Q3 EPS $0.57

Q3 Net $28.22

Income mln

Q3 Gross 50.70%

Margin

Q3 $23.69

Operatin mln

g Income

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "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 $150.00, about 9.5% above its November 5 closing price of $135.76

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release:

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(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.)