Camtek Prepares for Anticipated Q3 Results Amid Market Challenges
Camtek (NASDAQ: CAMT) is set to unveil its third-quarter 2024 financial results before the market opens on November 12.
CAMT anticipates third-quarter revenues between $107 million and $110 million.
The Zacks Consensus Estimate for revenue stands at $108.8 million, reflecting a significant year-over-year increase of 35.2%.
For earnings, the consensus estimate is 70 cents per share, unchanged over the last two months, suggesting a rise of 37.3% compared to the same quarter last year.
Camtek’s earnings have consistently surpassed the Zacks Consensus Estimate over the past four quarters, achieving an average surprise of 7%.
Explore the latest EPS estimates and surprises on Zacks Earnings Calendar.
Key Factors Influencing Camtek’s Performance
The expected rise in Camtek’s third-quarter performance is likely due to the increasing use of advanced interconnect packaging technologies, including heterogeneous integration (HI) that encompasses chiplet modules and high bandwidth memory (HBM).
The company has experienced growth in the high-performance computing (HPC) segment—inclusive of chiplets, HBM, and silicon substrates—driven by demand for products like mobile phones and PCs.
Camtek Ltd. Price and EPS Surprise
Camtek Ltd. price-eps-surprise | Camtek Ltd. Quote
The company’s metrology segment is poised for growth, particularly with its latest inspection system, the Eagle Generation-5, representing a key advancement in inspection technology.
Furthermore, significant orders for inspecting HBM wafers are expected to positively impact third-quarter outcomes.
Conversely, market and industry fluctuations could temper Camtek’s third-quarter results. Increased competition, driven by ongoing product innovations, may exert pressure on revenue growth.
Additionally, heavy investment in research and development to keep pace with HI technology trends might have adversely affected profitability.
Earnings Outlook Based on Zacks Model
The Zacks model indicates that a combination of positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) typically enhances the likelihood of an earnings beat. Currently, Camtek has an Earnings ESP of 0.00% and holds a Zacks Rank #3, suggesting less favorable odds for an earnings surprise.
Other Stocks to Watch in the Upcoming Earnings Cycle
Several other stocks present interesting opportunities with promising earnings potential in this reporting cycle.
Shopify (NASDAQ: SHOP) shows an Earnings ESP of +7.63% and holds a Zacks Rank #1. The stock has risen 11.8% year-to-date and is expected to disclose its third-quarter results on November 12, with a consensus earnings estimate of 27 cents per share—a 12.5% improvement from last year.
NVIDIA (NASDAQ: NVDA) reports an Earnings ESP of +2.30% and is ranked #2 by Zacks. Shares have surged 198.1% year-to-date, with third-quarter results scheduled for November 20. The consensus estimate is 74 cents per share, an 85% increase year-over-year.
Bilibili (NASDAQ: BILI) carries an Earnings ESP of +10.00% and ranks #2 as well. With shares gaining 85.6% this year, it is set to announce its earnings on November 14. The consensus estimate is 10 cents per share, indicating a 134.5% rise compared to last year.
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Recent reports and analyses on major companies like NVIDIA, Camtek, Shopify, and Bilibili are also available through Zacks Investment Research.
The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.
