BEVERLY, Mass. - Axcelis Technologies, Inc. (NASDAQ: ACLS) reported better-than-expected fourth quarter results but saw its stock tumble 6.8% after hours due to disappointing guidance for the first quarter of 2025.

The semiconductor equipment maker posted adjusted earnings per share of $1.54 for Q4, surpassing analyst estimates of $1.25. Revenue came in at $252.4 million, also beating the consensus forecast of $244.97 million. Compared to the same quarter last year, revenue decreased from $310.3 million.

However, Axcelis' outlook for Q1 2025 fell well short of expectations. The company guided for earnings per share of approximately $0.38 on revenue of $185 million. This compares unfavorably to analyst projections of $1.02 EPS and $221.6 million in revenue.

President and CEO Russell Low commented on the near-term outlook, stating, "As we look ahead to 2025, we anticipate a near term cyclical digestion period, as customers absorb the robust investments they've made into mature node capacity over the past few years - particularly in China."

For the full year 2024, Axcelis reported revenue of $1.02 billion, down from $1.13 billion in 2023. Net income was $201 million with diluted EPS of $6.15, compared to $245 million and $7.43 per share in the prior year.

Despite the revenue decline, the company improved its gross margin to 44.7% in 2024 from 43.5% in 2023. Axcelis ended the year with $123.5 million in cash and cash equivalents.

Axcelis Technologies stock sinks 6% on weak guidance

Axcelis Technologies, Inc. reported better-than-expected fourth quarter results but saw its stock decline by 6.8% after hours due to disappointing guidance for the first quarter of 2025. The company's adjusted earnings per share for Q4 was $1.54, exceeding analyst estimates, while revenue was $252.4 million, also surpassing expectations. However, Axcelis' guidance for Q1 2025 was significantly lower, leading to a negative outlook. The company anticipates a cyclical digestion period for customers in 2025 due to robust investments in mature node capacity, particularly in China. Despite revenue decline, Axcelis improved its gross margin in 2024 and ended the year with $123.5 million in cash.