ACM Research 2025 Q1 Earnings Beats Expectations with Net Income Rising 16.9%

ACM Research reported its fiscal 2025 Q1 earnings on May 08th, 2025. The company exceeded analysts' expectations by delivering an earnings surprise of 24.32%, with adjusted earnings per share coming in at $0.46, surpassing the Zacks Consensus Estimate of $0.37. ACM Research maintained its revenue guidance range of $850 million to $950 million for fiscal year 2025, reflecting in-line expectations with the management's assessment of international trade policy impacts and anticipated spending scenarios from key customers.

Revenue

ACM Research saw a 13.2% increase in total revenue for 2025 Q1, reaching $172.35 million compared to $152.19 million in the same quarter of the previous year. The single wafer cleaning, Tahoe, and semi-critical cleaning equipment segment led the growth, contributing $129.57 million. Meanwhile, the ECP (front-end and packaging), furnace, and other technologies brought in $27.63 million, and advanced packaging (excluding ECP), services, and spares added $15.15 million to the total revenue.

Earnings/Net Income

ACM Research's earnings per share rose by 14.3% to $0.32 in 2025 Q1, up from $0.28 in the same quarter last year, showcasing continued earnings growth. The company's net income reached $25.01 million, marking a 13.2% increase from $22.09 million in 2024 Q1. The EPS growth reflects strong performance driven by increased revenue and profitability.

Post Earnings Price Action Review

The strategy of purchasing ACMR shares after a quarterly revenue drop and holding for 30 days yielded moderate returns, though it involved considerable volatility and risk. The compound annual growth rate reached 12.82%, yet it lagged the benchmark by 79.64 percentage points. With a maximum drawdown of -84.34% and a Sharpe ratio of 0.16, the strategy underscored the challenges in balancing risk and returns. This emphasizes the necessity for robust risk management in navigating such volatile investment landscapes.

CEO Commentary

“Our first quarter results mark a good start to 2025. We delivered 13% year-over-year revenue growth, solid profitability, and positive cash flow from operations,” said Dr. David Wang, President and Chief Executive Officer of ACM. He highlighted strategic milestones, including the qualification of the high-temperature SPM tool by a major logic customer in China and customer acceptance of the backside/bevel etch tool from a U.S. customer. Dr. Wang emphasized ACM's technology leadership in front-end processing and advanced packaging, which positions the company to meet the evolving semiconductor demands driven by AI innovation.

Guidance

ACM is maintaining its revenue guidance range of $850 million to $950 million for fiscal year 2025. This expectation reflects management's current assessment of ongoing international trade policy impacts, anticipated spending scenarios from key customers, supply chain constraints, and the timing of tool acceptances in the field.

Additional News

ACM Research has recently appointed Charlie Pappis to its Board of Directors, effective March 15, 2025. This strategic addition aims to bolster the company's leadership with Pappis' extensive industry experience. In another significant development, ACM won the 2025 3D InCites Technology Enablement Award for its innovative Ultra ECP ap-p tool, which features the world's first horizontal plating for panel applications. This recognition underscores ACM's commitment to advancing semiconductor technology and addressing integration challenges in advanced packaging. Additionally, ACM is investing in its Oregon facility to enhance customer evaluations and support technology development, positioning it for potential future production growth.