In a year marked by significant volatility, Cohu , Inc. (NASDAQ: NASDAQ:COHU) has experienced a notable downturn, with its stock price reaching a 52-week low of $24.01. This latest price level reflects a stark contrast to the more robust performance seen in the past, with the stock now showing a 1-year change of -35.42%. Investors have been cautious as the company navigates through a challenging market environment, which has seen many tech stocks retreat from their previous highs. The decline to this year's low point underscores the broader industry pressures and investor sentiment that have weighed heavily on Cohu's market valuation.
In other recent news, semiconductor equipment and services provider Cohu, Inc. reported its Q2 earnings, posting revenues of nearly $105 million, in line with its guidance. The company has also forecasted Q3 revenues of $95 million and predicts a recovery by the first half of 2025. Cohu has seen growth in systems revenue in several markets, but has also noted declines in others, such as automotive and industrial.
The company has received a significant customer benchmark award, projecting approximately $100 million over five years, and has opened a new engineering design center for test instrumentation. Despite a double-digit decline in the handler market, Cohu expects a surge in demand for spares. The company anticipates the industrial market to pick up in Q1 2025, while the recovery timeline for the automotive market remains uncertain.
Cohu has qualified two new customers for its Krypton product in the automotive and aerospace sectors and sees potential business opportunities in Taiwan. Despite challenges with the sale of spare parts due to equipment cannibalization, the company remains focused on its long-term strategy of phased recovery across its market segments.
InvestingPro Insights
In light of Cohu, Inc.'s recent market performance, InvestingPro data provides a deeper understanding of the company's financial health and market position. As of the last twelve months leading up to Q2 2024, Cohu holds a market cap of approximately $1.13 billion. Despite the market headwinds, the company maintains a relatively strong gross profit margin of 46.45%. However, this has not translated to the bottom line, with a negative operating income margin of -4.87% and a concerning revenue decline of nearly 33% over the same period.
InvestingPro Tips suggest a mixed picture: while the management's aggressive share buybacks and the company's liquidity—holding more cash than debt—could be seen as positive signs, analysts have revised their earnings downwards and anticipate a sales decline in the current year. Moreover, the company's stock price has been quite volatile, trading near its 52-week low, and analysts do not expect Cohu to be profitable this year.
For those seeking a comprehensive analysis, InvestingPro offers additional insights, including 13 more tips on Cohu's financials and market performance. These tips can be accessed through the InvestingPro platform, offering investors a more nuanced view of the company's prospects.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.