PDF Solutions (PDFS) reported quarterly earnings of $0.18 per share, beating the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for one-time items.
This quarterly report represents an earnings surprise of 20%. A quarter ago, it was expected that this provider of software and services to semiconductor manufacturers would report earnings of $0.15 per share, while it actually produced earnings of $0.15, which was no surprise.
Over the past four quarters, the company has beaten consensus earnings per share estimates twice.
PDF Solutions, which belongs to the Zacks Computer – Services industry, posted revenues of $41.66 million for the quarter ending June 2024, surpassing the Zacks Consensus Estimate by 0.15%. This compares to year-ago revenues of $41.6 million. The company has surpassed consensus revenue estimates four times over the past four quarters.
The sustainability of the stock’s immediate price movement based on the recently released numbers and future earnings expectations will primarily depend on management’s comments in the earnings call.
PDF Solutions shares have lost about 11.5% since the beginning of the year, while the S&P 500 has gained 9%.
What’s next for PDF solutions?
While PDF Solutions has lagged the market so far this year, investors are asking themselves: what will happen next with the stock?
There are no easy answers to this important question, but one reliable measure that can help investors is the company’s earnings outlook. This includes not only the current consensus expectations for the coming quarters, but also how these expectations have changed recently.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the trend of estimate revisions for PDF Solutions is mixed. While the magnitude and direction of estimate revisions could change following the company’s just-released earnings report, the current status equates to a Zacks Rank #3 (Hold) for the stock. So, shares are expected to perform in line with the market in the near future. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the coming days. The current consensus earnings per share estimate is $0.21 on revenues of $45.9 million for the coming quarter and $0.82 on revenues of $180 million for the current fiscal year.
Investors should be aware that the outlook for the industry can also have a significant impact on the stock’s performance. In terms of the Zacks Industry Rank, Computer – Services is currently in the bottom 36% of the 250+ Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by more than 2x.
Forian Inc. (FORA), another company in the same industry, has not yet announced results for the quarter ending June 2024. The results are expected to be released on August 14.
This company is expected to report quarterly earnings at $0.03 per share in its upcoming report, representing a +200% change from the previous year. The consensus earnings per share estimate for the quarter has remained unchanged over the past 30 days.
Forian Inc.’s revenue is expected to be $5.26 million, an increase of 7.6% over the same quarter last year.
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