Onto Innovation's Stock Price Drops Despite Broader Market Gain

Onto Innovation (ONTO) shares ended at $96.95, a -1.77% change from the previous day's closing price, compared to the S&P 500's -0.01% change. The stock's change was less than the Dow's -0.32% and the Nasdaq's 0.05%. Onto Innovation is expected to report earnings of $1.27 per share, a year-over-year decline of 3.79%, and revenue of $249.75 million, up 3.06% from the prior-year quarter. The full-year Zacks Consensus Estimates are calling for earnings of $5.14 per share and revenue of $994.52 million.

Onto Innovation Inc (ONTO) shares ended the trading day at $96.95, marking a -1.77% change from the previous day's closing price. This decline was less pronounced than the S&P 500's -0.01% change and the Dow's -0.32% drop, but more significant than the Nasdaq's 0.05% gain.

Analysts expect Onto Innovation to report earnings of $1.27 per share, a year-over-year decline of 3.79%, and revenue of $249.75 million, up 3.06% from the prior-year quarter. The full-year Zacks Consensus Estimates are calling for earnings of $5.14 per share and revenue of $994.52 million.

On July 16, shares of Onto Innovation fell 3.73% in mid-day trading, reaching an intraday low of $94.26 before recovering slightly to $95.97. This places ONTO 59.83% below its 52-week high of $238.93 and 11.75% above its 52-week low of $85.88 [1].

Wall Street analysts have set an average target price of $157.22 for Onto Innovation, with a high estimate of $260.00 and a low estimate of $90.00. The average target implies an upside of 63.82% from the current price of $95.97 [1].

Benchmark has reiterated its Buy rating on Onto Innovation Inc (NYSE:ONTO), with a price target of $190. Despite recent market share losses to KLA (NASDAQ:KLAC) in the defect analysis segment, Onto Innovation maintains strong fundamentals with a healthy 53% gross margin and minimal debt on its balance sheet [2]. The company has introduced a new Gen 5 Dragonfly tool designed to measure smaller defects, which is particularly important to its AI customers. Onto Innovation plans to ship a beta version of this new tool by mid-2025 and expects a full production ramp in 2026 [2].

Onto Innovation has also announced a significant acquisition of Semilab International’s materials analysis business for approximately $545 million. This acquisition is expected to close in the second half of 2025 and is projected to generate about $130 million in revenue by 2025, enhancing the company's gross and operating margins [2].

Investors are advised to stay informed about Onto Innovation's strategic developments and earnings reports. As the company navigates through market challenges and technological advancements, its stock performance may reflect these dynamics.

References:
[1] https://www.gurufocus.com/news/2982073/onto-innovation-inc-onto-stock-price-down-373-on-jul-16
[2] https://www.investing.com/news/analyst-ratings/onto-innovation-stock-rating-reiterated-as-buy-by-benchmark-93CH-4139723