ACM Research, Inc. (NASDAQ: ACMR) Surpasses Financial Expectations

  • Earnings per share of $0.56, beating the estimated $0.31.
  • Revenue reached approximately $223.5 million, surpassing the estimated $179.7 million.
  • Significant growth with a 40% increase in revenue and a 63% rise in total shipments in 2024.

ACM Research, Inc. (NASDAQ:ACMR) is a key player in the semiconductor industry, providing wafer processing solutions for advanced packaging applications. On February 26, 2025, ACMR reported impressive financial results, with earnings per share of $0.56, surpassing the estimated $0.31. The company also achieved a revenue of approximately $223.5 million, exceeding the estimated $179.7 million.

In 2024, ACMR experienced a 40% increase in revenue and a 63% rise in total shipments, as highlighted by ACM's President and CEO, Dr. David Wang. This growth allowed the company to expand its market share significantly. The company's operating profit surged by 57.6%, and it generated $152 million in cash flow from operations, showcasing its strong financial performance.

ACMR's financial metrics provide further insight into its market position. The company's price-to-earnings (P/E) ratio is approximately 15.89, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 1.97, suggesting that investors are paying $1.97 for every dollar of sales, while the enterprise value to sales ratio is around 1.71.

The company's enterprise value to operating cash flow ratio is approximately 48.97, reflecting its cash flow generation relative to its valuation. ACMR maintains a low debt-to-equity ratio of 0.16, indicating a relatively low level of debt compared to its equity. Additionally, the current ratio is 2.37, demonstrating the company's strong ability to cover its short-term liabilities with its short-term assets.

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ACM Research Stock Jumps 13% After Jefferies’ Upgrade

Jefferies upgraded ACM Research (NASDAQ:ACMR) from Hold to Buy and raised its price target from $9 per share to $23.40. As a result, shares jumped more than 13% intra-day today.

Analysts cited the relaxation of DUV (deep ultraviolet) rules in China's fab CapEx as the basis for the rating change. The recent announcement by the Dutch government regarding the export rules for ASML's oldest Arf immersion machine, NXT1980Di, is expected to facilitate the export of this equipment to China.

The analysts believe that China will take advantage of this opportunity to purchase as much equipment as possible, given the machine's capability to produce 16/14nm and even 7/5nm. As a result, Jefferies also increased its revenue forecast for ACM Research for the years 2023 to 2026 by 23%, positioning it 8% above Street estimates.