News

Camtek Ltd. CAMT is scheduled to report fourth-quarter 2023 results on Feb 20.

The company has surpassed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average surprise of 5.1%.

In the last reported quarter, Camtek posted non-GAAP earnings of 51 cents per share, up from 48 cents reported in the year-ago quarter. The figure also surpassed the Zacks Consensus Estimate of 48 cents per share. Revenues decreased 1.85% year over year to $80.47 million. However, the top line topped the consensus mark by 2.84%.

For the fourth quarter, the company expects revenues between $87 million and 89 million. The Zacks Consensus Estimate is pegged at $88 million, indicating year-over-year growth of 7%. Further, the consensus estimate for earnings is pegged at 52 cents per share, indicating an increase of 4% from the year-ago quarter.

Let’s see how things are shaping up for this quarter.

Factors to Note

Camtek’s fourth-quarter results are likely to gain from the rising adoption of advanced interconnect packaging technologies, such as heterogeneous integration (HI), which includes chiplet modules and high bandwidth memory.

CAMT’s strong product portfolio is likely to have strengthened its performance across all end markets during the to-be-reported quarter. The company’s solid metrology business is expected to have gained momentum with the support of its new advanced solutions.

Nevertheless, Camtek’s fourth-quarter overall financial performance is expected to have been hurt by softening IT spending. Enterprises are postponing their large IT spending plans due to a weakening global economic scenario amid ongoing geopolitical and macroeconomic issues.

Moreover, the company’s sustained aggressive investment in research & development to comply with the technological road maps of HI technology is expected to have weighed on the bottom line.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Camtek this season. The combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. However, that’s not the case here.

Camtek currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks With the Favorable Combination

Per our model, Inseego INSG, Vertiv VRT and NVIDIA NVDA have the right combination of elements to post an earnings beat in their upcoming releases.

Inseego has an Earnings ESP of +4.17% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate twice in the trailing four quarters while missing on two occasions, the average negative surprise being 150.42%. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for INSG’s fourth-quarter loss per share is pegged at 48 cents, indicating a rise of 56.36% from the prior-year quarter. The consensus mark for revenues is pegged at $40.57 million, suggesting 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 scheduled to report fourth-quarter fiscal 2023 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate thrice in the trailing four quarters while matching the same on one occasion, the average surprise being 3.95%.

The Zacks Consensus Estimate for VRT’s fourth-quarter earnings is pegged at 54 cents per share, suggesting growth of 92.86% from the prior-year quarter. The consensus mark for revenues is pegged at $1.89 billion, suggesting a year-over-year increase of 14.14%.

NVIDIA has an Earnings ESP of +3.67% and carries a Zacks Rank #2 at present. The company is scheduled to report fourth-quarter fiscal 2024 results on Feb 21. Its earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 18.99%.

The Zacks Consensus Estimate for NVDA’s fourth-quarter earnings is pegged at $4.54 per share, indicating a surge of 415.91% from the prior-year quarter. The consensus mark for revenues is pegged at $20.21 billion, suggesting a year-over-year increase of 234%.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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