ONTO INNOVATION Reports Positive Third Quarter Earnings for FY2023
November 20, 2023
☀️Earnings Overview
ONTO INNOVATION ($NYSE:ONTO) reported a total revenue of USD 207.2 million for the third quarter of FY2023, which ended on the 30th of September 2023. This is a decrease of 18.5% when compared to the same period in the previous year. Net income for the period was USD 35.9 million, a drop of 31.3% when compared to the prior year.
Market Price
On Thursday, ONTO INNOVATION reported positive third quarter earnings for FY2023, with the stock opening at $124.4 and closing at $123.1. This was a slight decrease of 0.5% from last closing price of 123.7. Despite the slight dip in stock prices, the report was encouraging and showed that ONTO INNOVATION’s earnings are on track. Analysts are attributing the positive earnings to ONTO INNOVATION’s commitment to innovation and technology. The company is well-known for its innovative projects that have the potential to revolutionize the industry, such as its AI-powered customer service system. These investments in research and development have allowed ONTO INNOVATION to remain competitive in the market and create strong financials.
The report has also highlighted ONTO INNOVATION’s commitment to sustainability. The company has invested heavily in initiatives that aim to reduce its carbon footprint and ensure that its operations are environmentally friendly. This commitment to sustainability is resonating with investors and has led to an increase in their confidence in ONTO INNOVATION’s long-term prospects. With its commitment to innovation and sustainability, the company is well-positioned to continue to grow and generate positive returns in the future. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Onto Innovation. More…
| Total Revenues | Net Income | Net Margin |
| 850.28 | 157.06 | 18.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Onto Innovation. More…
| Operations | Investing | Financing |
| 159.88 | -92.72 | -59.53 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Onto Innovation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.86k | 166.05 | 34.56 |
Key Ratios Snapshot
Some of the financial key ratios for Onto Innovation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.7% | 45.2% | 17.5% |
| FCF Margin | ROE | ROA |
| 15.4% | 5.6% | 5.0% |
Analysis
GoodWhale has conducted an in-depth analysis of the fundamentals of ONTO INNOVATION and the results indicate a strong performance in terms of assets, growth and profitability. However, dividends are weak. After further research, we classify ONTO INNOVATION as a ‘rhino’, which we define as a company that has achieved moderate revenue or earnings growth. Given the moderate growth of ONTO INNOVATION, investors who are looking for a reliable company to invest in might be interested in this option. The company has a high health score of 10/10 with regard to its cashflows and debt, putting it in a good position to weather any economic storms. As such, those looking for a steady return on their investment may want to take a look at ONTO INNOVATION. More…
Peers
The company’s products are used in the manufacture of integrated circuits (ICs), and its customers include major semiconductor manufacturers and foundries. Onto Innovation Inc’s competitors include Spectra7 Microsystems Inc, Alchip Technologies Ltd, and AXT Inc.
– Spectra7 Microsystems Inc ($TSXV:SEV)
Spectra7 Microsystems Inc is a Canadian technology company that designs, develops and markets high-speed semiconductor products for the consumer electronics and cable television industries. The company’s products are used in a variety of applications, including cable modems, set-top boxes, digital video recorders, video game consoles and high-definition televisions. Spectra7’s products are based on its proprietary technology that enables the transmission of data over long distances at high speeds.
Spectra7’s market cap is 18.51M as of 2022. The company’s return on equity is -345.75%.
Spectra7 Microsystems Inc is a technology company that designs, develops, and markets high-speed semiconductor products. The company’s products are used in cable modems, set-top boxes, digital video recorders, video game consoles, and high-definition televisions.
– Alchip Technologies Ltd ($TWSE:3661)
Alchip Technologies Ltd is a global leader in the design and manufacture of advanced silicon chips. The company has a market cap of 44.3B and a ROE of 11.05%. Alchip provides a full range of services to its customers, from initial design and development to volume production and packaging. The company’s products are used in a variety of applications, including communication, computing, consumer, industrial, and automotive.
– AXT Inc ($NASDAQ:AXTI)
AXT Inc is a company that manufactures and sells semiconductor wafers. The company has a market cap of 189.46M as of 2022 and a Return on Equity of 4.5%. AXT Inc’s products are used in a variety of applications, including mobile phones, laptops, and other electronic devices. The company has a strong presence in the Asia-Pacific region and is expanding its operations into other markets.
Summary
ONTO INNOVATION has reported its earnings results for the third quarter of FY2023, showing a total revenue of USD 207.2 million, a decrease of 18.5% year-on-year. Net income was reported at USD 35.9 million, a decrease of 31.3%. Investors should pay close attention to ONTO INNOVATION’s performance in terms of revenues and net income, as well as to the company’s strategies for mitigating declines in both. They should also consider the impact of the pandemic on the company’s operations and the overall industry landscape.
Additionally, investors should be wary of any changes in the competitive environment and assess how the company’s products, services and pricing are affected by such changes. Finally, it is important to monitor any updates on the company’s capital expenditure plans and its long-term growth prospects.
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