Advanced Energy (AEIS) reports Q3: everything you need to know ahead of earnings

What happened

Advanced Energy will report earnings this Monday afternoon. Last quarter it reported revenue of $574.1 million, up 30% year on year, and beat analysts' revenue and adjusted operating income estimates. This quarter, the market expects revenue to grow 39.5% year on year.

Confirmed

Global impact / market context

Expectations are high: analysts want revenue growth of 39.5%, faster than last year's 23.8% increase. Beating those estimates has driven past gains. If Advanced Energy falls short, the stock could face pressure, which means a drop in its share price.

Analyst inference

Peers Bel Fuse and Littelfuse already reported growth of 23.2% and 22.7%. Bel Fuse rose 3.6% after its beat. That suggests electronic components demand remains solid, but results vary by company, so Advanced Energy's own numbers will decide how its stock trades.

Analyst inference

What to watch

1. Watch whether reported revenue exceeds the expected 39.5% year-on-year growth, since Advanced Energy has a history of exceeding Wall Street's expectations. Confirmed
2. Watch next-quarter revenue and EPS guidance, which means the company's own forecast, because last quarter's EPS guidance exceeded analysts' expectations. Proposed
3. Watch adjusted operating income and profit per sale, meaning how much profit remains from each dollar of revenue, since cost pressure could offset strong sales growth. Analyst inference

Evidence

• stockstory.org