Please ensure Javascript is enabled for purposes of website accessibility

Why Kulicke and Soffa Industries Inc. Stock Popped Today

By Steve Symington – Feb 3, 2016 at 3:40PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The semiconductor equipment specialist rose after an encouraging fiscal first-quarter 2016 report. Here's what investors need to know.

What: Shares of Kulicke and Soffa Industries (KLIC 1.40%) jumped more than 16% Wednesday after the semiconductor assembly-equipment company reported better-than-expected fiscal first-quarter 2016 results.

So what: Quarterly revenue climbed 1% year over year, to $108.5 million, and translated to a net loss of $0.1 million, or roughly flat on a per-share basis. But analysts, on average, were anticipating a $0.13 per-share loss on lower revenue of $95.3 million.

Kulicke & Soffa CEO Jonathan Chou explained: "Throughout this period of industry softness, our entire organization continues to be extremely disciplined on managing costs while we maintain our aggressive development efforts within both our core and emerging advanced packaging opportunities."

Management noted that, as of the company's fourth-quarter conference call in November 2015, that break-even revenue for fiscal Q1 was expected to be much higher, at $125 million.

Now what: In addition, Kulicke & Soffa expects fiscal second-quarter 2016 revenue to be roughly $130 million to $140 million, as the industry enjoys stabilizing inventory in what Chou describes as a "recovering market environment." By comparison, analysts' consensus estimates called for fiscal Q2 revenue of just $129.1 million.

While Kulicke & Soffa's results don't look terribly strong at first glance, this is a cut-and-dry case of a beat and raise from a company that has wisely focused on operational efficiency to weather the industry downturn. As Kulicke & Soffa continues its steady march toward achieving sustained, profitable growth as the industry improves, I see no reason its stock price won't follow suit.

Steve Symington has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Kulicke and Soffa Industries, Inc. Stock Quote
Kulicke and Soffa Industries, Inc.
$39.74 (1.40%) $0.55

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/29/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.