Advanced Energy Industries (NASDAQ:AEIS) Releases Earnings Results, Beats Estimates By $0.61 EPS

Advanced Energy Industries (NASDAQ:AEIS) released its earnings results on Monday. The electronics maker reported $3.65 earnings per share for the quarter, topping analysts’ consensus estimates of $3.04 by $0.61, FiscalAI reports. The company had revenue of $696.40 million during the quarter, compared to the consensus estimate of $644.85 million. Advanced Energy Industries had a return on equity of 20.75% and a net margin of 10.77%.

Here are the key takeaways from Advanced Energy Industries’ conference call:

• Record third-quarter results exceeded guidance, with revenue up 50% year over year to $696 million, EPS more than doubling to $3.65, gross margin reaching 42.1%, and operating margin expanding to 24.4%.
• Management raised its 2026 outlook to approximately 40% revenue growth and expects fourth-quarter revenue of about $735 million, with EPS of $3.90 plus or minus $0.30. It also characterized 2027 demand as robust, with potential growth of roughly 30% across semiconductor and data-center-related business.
• Semiconductor revenue rose 64% year over year and data-center revenue increased 49%, supported by leading-edge wafer investment, AI infrastructure demand, new design wins, and expanding hyperscale programs. New plasma-power, system-power, and 800-volt solutions are expected to drive market-share gains through 2027 and beyond.
• Advanced Energy is ramping its new Thailand factory and expanding output in the Philippines, Malaysia, and Mexico, targeting more than $5 billion of annual revenue capacity by 2028. Thailand has already qualified multiple data-center customers, with semiconductor qualifications expected shortly.
• Supply constraints remain a risk despite strategic inventory and capacity investments, particularly for integrated circuits, printed circuit boards, and specialty ceramics. Management said some constraints will not be fully mitigated and could limit upside, while engineering bandwidth is also becoming a bottleneck.

Advanced Energy Industries Trading Down 2.2%

AEIS traded down $4.87 on Monday, hitting $217.19. 830,565 shares of the company were exchanged, compared to its average volume of 742,604. The firm has a fifty day simple moving average of $267.24 and a two-hundred day simple moving average of $307.22. The company has a debt-to-equity ratio of 0.78, a quick ratio of 2.94 and a current ratio of 3.79. Advanced Energy Industries has a 12 month low of $187.71 and a 12 month high of $397.44. The stock has a market capitalization of $8.70 billion, a PE ratio of 40.52 and a beta of 1.38.

Wall Street Analysts Forecast Growth

Several research analysts have commented on the stock. Needham & Company LLC reissued a “buy” rating and set a $400.00 price target on shares of Advanced Energy Industries in a research note on Tuesday, August 4th. TD Cowen boosted their price objective on shares of Advanced Energy Industries from $350.00 to $370.00 and gave the stock a “hold” rating in a report on Tuesday, August 4th. Citigroup reaffirmed a “buy” rating on shares of Advanced Energy Industries in a research note on Monday, September 28th. Zacks Research lowered shares of Advanced Energy Industries from a “strong-buy” rating to a “hold” rating in a report on Friday, October 23rd. Finally, Cantor Fitzgerald reiterated an “overweight” rating on shares of Advanced Energy Industries in a research report on Tuesday, September 22nd. Eleven analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $404.17.

Insider Buying and Selling

In other Advanced Energy Industries news, EVP Elizabeth Vonne sold 908 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The stock was sold at an average price of $332.68, for a total value of $302,073.44. Following the completion of the sale, the executive vice president owned 10,712 shares in the company, valued at approximately $3,563,668.16. The trade was a 7.81% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, COO Eduardo Acebedo sold 24,771 shares of the business’s stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $315.48, for a total value of $7,814,755.08. Following the completion of the sale, the chief operating officer owned 23,109 shares of the company’s stock, valued at $7,290,427.32. The trade was a 51.74% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 27,218 shares of company stock worth $8,562,008 over the last ninety days. Insiders own 1.30% of the company’s stock.

About Advanced Energy Industries

Advanced Energy Industries, Inc develops and manufactures precision power-conversion, measurement and control technologies. Its products are designed to regulate, transform and deliver electrical power with high levels of accuracy and reliability in demanding industrial applications.

The company’s portfolio includes direct-current and alternating-current power supplies, radio-frequency power systems, high-voltage power supplies, thermal-management equipment, power control modules, and measurement and control instruments.