What factors could drive KLIC's EPS surprise in Q2 2025?

**Kulicke & Soffa Industries Inc. (KLIC) is likely to experience a positive EPS surprise in Q2 2025 due to several strategic initiatives and market trends.** Here's a detailed analysis:

1. **Strategic Expansions and New Orders**: KLIC has been navigating challenges effectively by making strategic expansions and securing significant new orders. These expansions are likely to have a positive impact on revenue and profitability, potentially leading to an EPS surprise.
2. **Recovery in Core Markets**: The company anticipates a recovery in its core semiconductor and automotive end markets during fiscal 2025, driven by improved capacity utilization rates. This recovery is likely to boost performance, contributing to a positive EPS surprise.
3. **Advanced Packaging Formats**: KLIC expects to commence higher volume production in advanced packaging formats for the memory market by late 2025 or early 2026. This strategic move could lead to increased revenue and gross margin, supporting a potential EPS surprise.
4. **Long-Term Growth Projections**: The company has projected a 20%-25% CAGR growth in the TCB (Through Silicon Via) market. This long-term growth outlook suggests that KLIC is positioning itself for future success, which could positively influence Q2 2025 EPS.
5. **Earnings Growth Forecast**: KLIC has experienced a positive earnings growth rate of 21.70% in the past year, despite a decline in the current year. The forecast of a 20.00% positive earnings growth rate over the next five years indicates a strong potential for an EPS surprise in Q2 2025.

In conclusion, KLIC's strategic initiatives, market recoveries, and long-term growth projections suggest that the company is well-positioned for a positive EPS surprise in Q2 2025.