AEHR Inventory Up 65% Since Begin of 2023
Shares of Aehr Check Techniques (NASDAQ:AEHR) just lately ripped to a report excessive, constructing on the features they made because the firm reported one other quarter of nice monetary outcomes on January 5.
Aehr Check Techniques inventory completed calendar 12 months 2022 down by 18%, however it had additionally rallied by 200% since July of that 12 months. That momentum carried into 2023 after the corporate introduced that its revenues in its fiscal second quarter (ended November 30, 2022) jumped on the energy of its gross sales of semiconductor testing and burn-in tools for the electrical automobile (EV) trade. Its internet earnings additionally massively jumped throughout its fiscal second quarter.
Aehr Check Techniques’ upward monetary trajectory is anticipated to proceed, particularly because the firm has a big order backlog.
For its fiscal 12 months 2022, Aehr has reiterated its earlier steering that its complete income shall be within the vary of $60.0 to $70.0 million (up from $16.6 million in fiscal 2021). The corporate additionally forecasts that its revenue margins in fiscal 2022 shall be excessive, much like its revenue margins in fiscal 2021.
Furthermore, the corporate continues to count on that its bookings will develop sooner than its revenues in fiscal 2023 because the demand for silicon carbide in EVs will increase exponentially.
It’s no surprise that traders have been bullish on AEHR inventory recently. As of this writing, Aehr Check Techniques inventory is up by:
- 57% over the past month
- 188% over the past six months
- 65% year-to-date
- 180% year-over-year
Likelihood is good that AEHR inventory will expertise some well-deserved, short-term profit-taking. Aehr Check Techniques inventory is presently buying and selling up by 22% over its 50-day easy shifting common and 115% over its 200-day easy shifting common.
Chart courtesy of StockCharts.com
About Aehr Check Techniques
Aehr Check Techniques has been a pacesetter within the semiconductor burn-in and testing options trade for greater than 40 years.
The corporate designs, engineers, manufactures, and sells testing techniques for burning-in semiconductor gadgets in wafer-level, singulated-die, and package-part kind. (Supply: “Aehr Stories 54% Income Progress Yr Over Yr in Second Quarter of Fiscal 2023,” Aehr Check Techniques, January 5, 2023.)
Its techniques are used within the automotive, cellular, photonics, silicon carbide, and silicon reminiscence and logic industries. (Supply: “Investor Presentation,” Aehr Check Techniques, final accessed January 30, 2023.)
The corporate has put in greater than 2,500 techniques worldwide.
Aehr Check Techniques’ prospects embrace Lumentun Holdings Inc (NASDAQ:LITE), Seagate Know-how Holdings PLC (NASDAQ:STX), Taiwan Semiconductor Mfg. Co. Ltd. (NYSE:TSM), Texas Devices Included (NYSE:TXN), and the U.S. Division of Protection.
Lengthy-term market drivers for the $9.0-billion semiconductor testing market embrace the speedy world adoption of EVs, in addition to the elevated demand for automotive built-in circuits, silicon photonics, smartphones, and tablets.
$25-Million Order to Help EVs
On January 22, Aehr introduced that it had obtained a $25.4-million follow-on order from its lead silicon carbide testing and burn-in buyer for a big variety of “FOX-XP” wafer-level testing and burn-in techniques for the manufacturing of silicon carbide gadgets for EVs. (Supply: “Aehr Receives $25.1 Million Order for FOX-XP Check and Burn-in Techniques,” Aehr Check Techniques, January 22, 2023.)
The consumer is a number one Fortune 500 semiconductor system provider that has a big buyer base within the automotive market.
Aehr Check Techniques expects to ship the FOX-XP techniques in its fiscal 2023 fourth quarter (starting March 1) by way of its fiscal 2024 second quarter (ending November 30, 2023).
Fiscal Q2 Revenues Up 54%; Earnings Up 416%
For the second quarter of its fiscal 2023, which ended November 30, 2022, Aehr introduced that its income elevated by 54% year-over-year to $14.8 million. (Supply: Aehr Check Techniques, January 5, 2023, op. cit.)
The corporate’s internet earnings within the quarter was $3.7 million, or $0.13 per share, up from $717,000, or $0.03 per share, in the identical interval of the earlier 12 months. That’s a rise of 416%.
Aehr Check Techniques’ adjusted earnings, which exclude the influence of stock-based compensation, within the second quarter of fiscal 2023 have been $4.5 million, or $0.16 per share. That’s in comparison with adjusted earnings of $1.4 million, or $0.05 per share, within the second quarter of fiscal 2022.
Aehr closed the second fiscal quarter with bookings of $10.8 million and an order backlog of $15.5 million.
Gayn Erickson, Aehr Check Techniques’ president and CEO, commented, “We had a really stable quarter, reflecting robust sequential and year-over-year development in income and internet earnings, each forward of consensus estimates.” (Supply: Ibid.)
“Our momentum in silicon carbide wafer stage burn-in continues to develop. We see this momentum persevering with for the subsequent a number of years as corporations are including important capability in silicon carbide semiconductors to deal with the unbelievable forecasted demand, significantly for the electrical automobile and electrical automobile charger markets.”
Analyst Take
Aehr Check Techniques appears to be doing the whole lot proper. The corporate achieved report monetary ends in its fiscal 2022. Then its income surged by 89% within the first quarter of fiscal 2023 and 54% within the second quarter.
Administration expects to proceed reporting fantastic outcomes because the demand for silicon carbide in EVs will increase exponentially all through the last decade.
This implies AEHR inventory might be on the way in which up.
