Examining the Future: Onto Innovation's Earnings Outlook
Onto Innovation (NYSE:ONTO) is set to give its latest quarterly earnings report on Thursday, 2025-08-07. Here's what investors need to know before the announcement.
Analysts estimate that Onto Innovation will report an earnings per share (EPS) of $1.27.
Anticipation surrounds Onto Innovation's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.
New investors should understand that while earnings performance is important, market reactions are often driven by guidance.
Historical Earnings Performance
The company's EPS beat by $0.03 in the last quarter, leading to a 30.21% drop in the share price on the following day.
Here's a look at Onto Innovation's past performance and the resulting price change:
| Quarter | Q1 2025 | Q4 2024 | Q3 2024 | Q2 2024 |
|---|---|---|---|---|
| EPS Estimate | 1.48 | 1.41 | 1.32 | 1.20 |
| EPS Actual | 1.51 | 1.51 | 1.34 | 1.32 |
| Price Change % | -30.0% | -11.0% | -11.0% | 9.0% |
Tracking Onto Innovation's Stock Performance
Shares of Onto Innovation were trading at $94.75 as of August 05. Over the last 52-week period, shares are down 48.58%. Given that these returns are generally negative, long-term shareholders are likely a little upset going into this earnings release.
Analyst Insights on Onto Innovation
For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Onto Innovation.
Analysts have given Onto Innovation a total of 5 ratings, with the consensus rating being Buy. The average one-year price target is $134.0, indicating a potential 41.42% upside.
Peer Ratings Comparison
This comparison focuses on the analyst ratings and average 1-year price targets of Enphase Energy, Amkor Tech and MKS, three major players in the industry, shedding light on their relative performance expectations and market positioning.
- Analysts currently favor an Underperform trajectory for Enphase Energy, with an average 1-year price target of $39.79, suggesting a potential 58.01% downside.
- Analysts currently favor an Neutral trajectory for Amkor Tech, with an average 1-year price target of $24.0, suggesting a potential 74.67% downside.
- Analysts currently favor an Outperform trajectory for MKS, with an average 1-year price target of $109.12, suggesting a potential 15.17% upside.
Peers Comparative Analysis Summary
The peer analysis summary offers a detailed examination of key metrics for Enphase Energy, Amkor Tech and MKS, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.
| Company | Consensus | Revenue Growth | Gross Profit | Return on Equity |
|---|---|---|---|---|
| Onto Innovation | Buy | 16.50% | $143.23M | 3.33% |
| Enphase Energy | Underperform | 19.67% | $170.49M | 4.38% |
| Amkor Tech | Neutral | 3.42% | $181.90M | 1.30% |
| MKS | Outperform | 7.83% | $444M | 2.22% |
Key Takeaway:
Onto Innovation ranks in the middle for Consensus rating. It is at the bottom for Revenue Growth and Gross Profit, but at the top for Return on Equity among its peers.
Delving into Onto Innovation's Background
Onto Innovation Inc is engaged in the design, development, manufacture, and support of high-performance control metrology, defect inspection, lithography, and data analysis systems used by microelectronics device manufacturers. The Company and its subsidiaries currently operate in a single operating segment. The company mainly operates in the United States, Southeast Asia, China, Japan, and Europe, with Taiwan and South Korea the sources of total revenue.
Onto Innovation: Delving into Financials
Market Capitalization Analysis: The company exhibits a lower market capitalization profile, positioning itself below industry averages. This suggests a smaller scale relative to peers.
Revenue Growth: Onto Innovation's remarkable performance in 3 months is evident. As of 31 March, 2025, the company achieved an impressive revenue growth rate of 16.5%. This signifies a substantial increase in the company's top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.
Net Margin: Onto Innovation's net margin excels beyond industry benchmarks, reaching 24.04%. This signifies efficient cost management and strong financial health.
Return on Equity (ROE): The company's ROE is a standout performer, exceeding industry averages. With an impressive ROE of 3.33%, the company showcases effective utilization of equity capital.
Return on Assets (ROA): Onto Innovation's ROA surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 3.03% ROA, the company effectively utilizes its assets for optimal returns.
Debt Management: With a below-average debt-to-equity ratio of 0.01, Onto Innovation adopts a prudent financial strategy, indicating a balanced approach to debt management.
To track all earnings releases for Onto Innovation visit their earnings calendar on our site.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
