Cohu Reports Quarterly Loss: What’s Next for Investors?
Cohu (COHU) announced a quarterly loss of $0.08 per share, aligning with the Zacks Consensus Estimate. This is a decline from earnings of $0.35 per share from the same period last year. These figures have been adjusted for non-recurring items.
A quarter ago, analysts anticipated a loss of $0.03 per share for this semiconductor test equipment manufacturer. However, Cohu managed to post a smaller loss of $0.01, marking a 66.67% positive surprise.
Over the last four quarters, the company has outperformed consensus EPS estimates three times.
In the third quarter ended September 2024, Cohu reported revenues of $95.34 million, exceeding the Zacks Consensus Estimate by 0.36%. This represents a decrease from last year’s revenues of $150.8 million. The company has also beaten consensus revenue forecasts three times during the past four quarters.
The future trajectory of Cohu’s stock will depend heavily on management’s insights during the earnings call regarding their outlook and strategies.
This year, Cohu shares have dropped about 26.7%, while the S&P 500 index has risen by 21.9% during the same period.
What Lies Ahead for Cohu?
Despite its struggles in 2024, investors are naturally curious about Cohu’s future. Understanding the company’s earnings outlook can shed light on potential stock performance.
Gauging earnings estimates and their revisions is crucial. Historical data indicates a significant link between stock movements and trends in earnings estimate revisions. Investors can monitor these changes on their own or utilize a reliable rating tool like the Zacks Rank, known for its effectiveness in this area.
As of now, the earnings estimate revisions for Cohu appear mixed. The company’s recent earnings report may alter the magnitude and direction of these revisions. Currently, Cohu holds a Zacks Rank #3 (Hold), suggesting the stock is expected to perform in line with the market in the near term. Investors can check the full list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Moving forward, it will be interesting to see changes in estimates for the next quarters and the current fiscal year. Current consensus estimates predict EPS of -$0.04 on $97.25 million in revenues for the upcoming quarter, and -$0.11 on $404.55 million in revenues for the current fiscal year.
The outlook for the broader Electronics – Manufacturing Machinery industry, to which Cohu belongs, is also important for the stock’s performance. This industry ranks in the top 29% among over 250 Zacks industries, suggesting strong potential, as the top half of ranked industries tend to outperform the bottom half significantly.
Another company in this sector, MKS Instruments (MKSI), is set to report its quarterly results for September 2024 on November 6. MKS is expected to report earnings of $1.42 per share, reflecting a slight year-over-year decline of 2.7%. Additionally, revenues are anticipated to reach $873.1 million, a decrease of 6.3% compared to the previous year.
Is Cohu, Inc. (COHU) Worth Your Investment?
If you are considering investing in Cohu, Inc. (COHU), you may want to explore additional stock options for the near future. Zacks Investment Research offers insights into the best stocks to buy.
Since 1978, Zacks has provided investors with tools and independent research, achieving an impressive average gain of +24.08% per year, more than doubling the S&P 500’s performance from January 1, 1988, to May 6, 2024.
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