Why Shares of Axcelis Technologies Popped Today

What happened

Shares of semiconductor equipment manufacturer Axcelis Technologies (NASDAQ: ACLS) jumped on Friday after the company reported its first-quarter results. Axcelis beat analyst estimates for both revenue and earnings per share, news that sent the stock up as much as 16% Friday morning. By 1:30 p.m. EDT, shares were still up about 8%.

So what

Axcelis reported first-quarter revenue of $86.9 million, up from $67.5 million in the prior-year period and nearly $7 million higher than the average analyst estimate. Product revenue jumped 31.9% to $82.0 million, while services revenue declined 8.1% to $4.9 million.

Image source: Axcelis Technologies.

Axcelis produced net income of $9.5 million, or $0.29 per share, up from $1.9 million, or $0.06 per share, during the first quarter of 2016. Analysts were expecting EPS of $0.21. Higher revenue was the main driver of the earnings beat, with the company touting the shipment of its 100th Purion ion implantation system.

President and CEO Mary Puma talked up the Purion product line:

Now what

Axcelis expects to produce approximately $100 million of revenue during the second quarter, up from $64 million during the second quarter of 2016. Gross margin of 38% is expected, along with EPS between $0.30 and $0.35.

The semiconductor equipment market is cyclical, and Axcelis is prone to significant swings in demand. Investors focused on the present on Friday, though, pushing up the stock on solid first-quarter results.

10 stocks we like better than Axcelis TechnologiesWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the 10 best stocks for investors to buy right now... and Axcelis Technologies wasn't one of them! That's right -- they think these 10 stocks are even better buys.

Click here to learn about these picks!

*Stock Advisor returns as of May 1, 2017

Timothy Green has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.