Shares of ACM Research (ACMR -4.42%) were moving higher today after the company updated its full-year guidance for 2023 and gave better-than-expected guidance for 2024.
As a result, the semiconductor stock was up 10.8% as of 12:10 p.m. ET.
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ACM surprises to the upside
ACM Research makes wafer-cleaning equipment for the semiconductor industry and it occupies a unique niche in the sector. The stock soared in 2023 on broader gains in the sector, and 2024 seems to be off to a strong start as well.
In what was essentially a preliminary earnings release for the fourth quarter, ACM said that it now expected 2023 revenue of $530 million to $545 million for the full year, up from a previous forecast of $520 million to $540 million. That forecast implies revenue of $143 million to $158 million for the fourth quarter, which compares to the analyst consensus at $143.8 million, and implies 39% growth at the midpoint.
Looking ahead to 2024, management expects revenue of $650 million to $725 million. That would be 28% revenue growth from the midpoint of the 2023 projection to the midpoint of the 2024 projection. The midpoint of the 2024 forecast at $687.5 million was better than the consensus at $669.3 million.
CEO David Wang said, "We expect continued growth in 2024 as we continue on our mission to become a key supplier to major semiconductor manufacturers."
Why ACM Research can keep moving higher
ACM will be presenting at an investor conference held by UBS tomorrow and it's likely to add commentary to the update today. Investors could see another stock price movement tomorrow as a result.
The company seems to be building momentum as it announced a purchase order from a large U.S. manufacturer in November, and it should benefit from growth in the sector due to the artificial intelligence (AI) boom.
Additionally, the stock looks well priced at a price-to-earnings ratio of 14 based on its adjusted earnings, and it's still down substantially from its peak in 2021.
If ACM can keep delivering strong top-line growth, the stock should continue moving higher.
