Advanced Energy Industries, Inc (AEIS) research, news, and more from GeoInvesting

Company description

Wed, 05 Mar 2008 05:00:00 GMT

Advanced Energy is a global leader in the development and support of technologies critical to high-technology, high-growth manufacturing processes used in the production of semiconductors, flat panel displays, data storage products, solar cells, architectural glass, and other advanced product applications. Leveraging a diverse product portfolio and technology leadership, Advanced Energy creates solutions that maximize process impact, improve productivity and lower the cost of ownership for its customers. This portfolio includes a comprehensive line of technology solutions in power, flow, thermal management, and plasma and ion beam sources for original equipment manufacturers and end-users around the world. Advanced Energy operates in regional centers in North America, Asia and Europe and offers global sales and support through direct offices, representatives and distributors,

Call to Action

Tue, 28 Jun 2016 15:58:23 GMT

AEIS ($35.58) is the world leader in precision power conversion. We like that the company helps its customers power their processes more efficiently. AEIS designs, manufactures, sells, and supports power conversion products and solutions that transform power into various usable forms.

The company has been on a torrid growth rate since 2012. EPS has grown from $0.52 in 2012 to $2.17 in 2015 and is expected to grow to $2.45 and $2.68 in 2016 and 2017, respectively. We caution that since some of the company's customers are in the semiconductor industry, quarterly financials can experience volatility from time to time.

Quote from management:

“Semiconductor revenues rebounded nearly 39% from the fourth quarter, driving better-than-expected total sales and earnings per share from continuing operations,” said Yuval Wasserman, President and CEO of Advanced Energy. “Our leading position as an enabler of critical applications in high growth areas of semiconductors processing, combined with our growing service business, more than offset the temporary slowdown in our industrial applications and should allow us to continue to grow faster than the markets we serve, reflecting the advantages of our diversified model.”

The next three quarters are expected to show some nice growth in EPS before slowing down in 2017. Still, AEIS has handily beat estimates, so we think the stock price could potentially reach $50 by years’ end if growth stays on track. We will be monitoring pullbacks under $34.28. Please note the company's revenues are less than they were three years ago due to the discontinuation of one of its divisions.

Caveat:

Serves some cyclical industries
6% of sales from The U.K.

GeoSpecial Notes

Fri, 08 Jul 2011 04:00:00 GMT

Removing AEIS from the GeoSpeicial List @ $13.25

Added to the GeoSpecial list @ $17.10

Catalyst: Stock had fallen on strong 2010 seocnd quarter financials that handily exceede analyst estimates.

Peak performance: Reached a high of $18.52 on August 2, 2010 .
Current road block: Constant case of undelivering on guidance; Quarterly EPS volatility; One of the few U.S. GeoSpeical that has not panned out for our team

Current Price: $13.38

Comments & Business Outlook

Tue, 03 May 2011 04:00:00 GMT

FORT COLLINS, Colo.--(BUSINESS WIRE)--Advanced Energy Industries, Inc. (Nasdaq GM: AEIS) today announced financial results for the first quarter ended March 31, 2011.

The company posted first quarter sales of $137.7 million, operating income of 17.7%, and earnings of $0.43 per diluted share from continuing operations, compared to net income from continuing operations of $19.7 million or $0.45 per diluted share in the fourth quarter of 2010

"Advanced Energy had another quarter of solid financial and organizational performance. Our strategy to transition the company to a diversified business model paid dividends this quarter as increased shipments in our thin films business minimized the seasonality of our renewables business," said Dr. Hans Betz, chief executive officer.

The Company anticipates second quarter 2011 results from continuing operations, to be within the following ranges:

Sales of $148 million to $160 million
Earnings per share of $0.36 to $0.44

Research

Thu, 29 Jul 2010 04:00:00 GMT

Advanced Energy Reported a strong 2010 second quarter on July 21, 2010:

Sales rose 213.8% to $100.11 million.
EPS was $0.26 per diluted share, compared to $0.11 per diluted share in the first quarter of 2010. In the same period a year ago, net loss was $0.38 per share.

Comments were very bullish and indicate that strength in AEIS's business will continue:

“We had an outstanding second quarter, with $154 million in bookings and $115 million in revenue, including PV Powered and the flow business. As our semiconductor revenues continued to grow, the semiconductor industry demonstrated its momentum again this quarter,” said Dr. Hans Betz, chief executive officer.

"Our recent acquisition of PV Powered contributed significantly to our higher inverter revenues and backlog, which we anticipate will provide momentum for the second half of 2010. PV Powered also contributed to our bottom line, delivering a profitable second quarter ahead of expectations and making the acquisition immediately accretive. The addition of this excellent team and product line to our Solaron inverter business positions us to forge ahead and take the leading position in the US market for inverters and expand worldwide.”

"Additionally, today we announced that we are divesting our flow business. We see this move as a crucial part of our corporate strategy to focus the company on becoming the market leader in power conversion and capitalize on future growth opportunities.” Business Wire (July 21, 2010)

The Company anticipates third quarter 2010 results from continuing operations, without revenues from the flow business, to be within the following ranges:

Sales of $130.0 million to $140.0 million
Earnings per share of $0.36 to $0.44

AEIS reported a loss in last years second quarter.

The stock has popped from about $14.00 to $17.42 since the release of its financial results and has a trailing P/E of over 80. However, based on 2011 fully taxed EPS estimates of $1.55 and a P/E of 15 investors may bid the stock up to $23.21. We are hoping for a pullback to establish an entry point, but may nibble here.