Key Takeaways
Advanced Energy Industries Inc. (NASDAQ:AEIS) shares fell 11.2% on Monday despite the company reporting first-quarter revenue and earnings that topped Wall Street expectations.
The results beat the average estimate of five analysts surveyed by Zacks Investment Research for earnings of $1.97 per share and three analysts' revenue forecast of $510.9 million.
The Denver-based maker of power-conversion products reported adjusted first-quarter earnings of $2.09 per share on revenue of $511 million. On a GAAP basis, the company had net income of $66.8 million, or $1.58 per share. This compares to earnings of $1.23 per share a year ago.
The negative stock reaction suggests investors may be taking profits after a significant rally that saw shares rise 86% since the beginning of the year. The company’s second-quarter guidance, while strong, may have underwhelmed expectations for a stock that has more than tripled in the last 12 months.
For the current quarter ending in June, Advanced Energy expects its per-share earnings to range from $1.93 to $2.43. The company said it expects revenue in the range of $520 million to $560 million for the fiscal second quarter.
The sell-off places the stock well off its recent highs of $389.24. Investors will be watching to see if the stock can find support after its prolonged run-up, with the next catalyst being the company's second-quarter results later this year.
This article is for informational purposes only and does not constitute investment advice.
