Camtek Ltd. CAMT is set to unveil its financial results for the fourth quarter of 2023 on Feb 20.
The company has consistently outperformed the Zacks Consensus Estimate in the last four quarters, delivering an average surprise of 5.1%.
In the previous quarter, Camtek reported non-GAAP earnings of 51 cents per share, up from 48 cents in the year-ago quarter. Although revenues declined 1.85% year over year to $80.47 million, they still exceeded the consensus mark by 2.84%.
For the fourth quarter, Camtek anticipates revenues in the range of $87 million to $89 million. The Zacks Consensus Estimate stands at $88 million, indicating a 7% year-over-year growth. Moreover, the consensus estimate for earnings is set at 52 cents per share, reflecting a 4% increase from the year-ago quarter.
Let’s delve into the factors shaping the company’s performance for this upcoming quarter.
Camtek Ltd. Price and EPS Surprise 
Camtek Ltd. price-eps-surprise | Camtek Ltd. Quote
Factors to Consider
Camtek’s Q4 results are poised to benefit from the increasing adoption of advanced interconnect packaging technologies, such as heterogeneous integration (HI), encompassing chiplet modules and high bandwidth memory.
The company’s robust product portfolio is expected to have bolstered its performance across all end markets in the to-be-reported quarter. Additionally, its solid metrology business is likely to have gained traction with the aid of newly introduced advanced solutions.
However, Camtek’s financial performance for the fourth quarter is projected to have been impacted by weakened IT spending, as enterprises defer their major IT investments amidst prevailing global economic uncertainties and ongoing geopolitical issues.
Moreover, the company’s sustained aggressive investment in research & development to adhere to the technological roadmaps of HI technology is likely to have exerted pressure on the bottom line.
Analyst Projections
As per our proven model, it does not conclusively predict a beat for Camtek in this reporting cycle. While a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) usually increase the odds of an earnings beat, Camtek currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell).
On the contrary, other stocks such as Inseego INSG, Vertiv VRT, and NVIDIA NVDA appear to have the right mix of components to potentially surpass earnings estimates in their upcoming releases.
Inseego has an Earnings ESP of +4.17% and holds a Zacks Rank #2 at present. The company is scheduled to disclose its fourth-quarter fiscal 2023 results on Feb 21. Although its earnings have outpaced the Zacks Consensus Estimate twice in the last four quarters, the average negative surprise stands at 150.42%.
The Zacks Consensus Estimate for INSG’s fourth-quarter loss per share is pegged at 48 cents, signaling a rise of 56.36% from the prior-year quarter. The consensus mark for revenues is forecasted at $40.57 million, denoting a year-over-year decrease of 23.34%.
Vertiv has an Earnings ESP of +1.90% and carries a Zacks Rank #2 at present. The company is also slated to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings have exceeded the Zacks Consensus Estimate thrice in the last four quarters, with the average surprise being 3.95%.
The Zacks Consensus Estimate for VRT’s fourth-quarter earnings is set at 54 cents per share, indicating a growth of 92.86% from the prior-year quarter. The consensus mark for revenues is estimated at $1.89 billion, representing a year-over-year increase of 14.14%.
NVIDIA has an Earnings ESP of +3.67% and holds a Zacks Rank #2 at present. The company plans to announce its fourth-quarter fiscal 2024 results on Feb 21. Its earnings have exceeded the Zacks Consensus Estimate in each of the last four quarters, with the average surprise being 18.99%.
The Zacks Consensus Estimate for NVDA’s fourth-quarter earnings is set at $4.54 per share, indicating a surge of 415.91% from the prior-year quarter. The consensus mark for revenues is projected at $20.21 billion, implying a year-over-year increase of 234%.
In conclusion, investors are advised to stay tuned for the upcoming earnings announcements with the Zacks Earnings Calendar and heed their investment decisions based on the outcome.
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