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Shares of Orbotech (NASDAQ: ORBK), a provider of yield enhancement and production solutions for the electronics industry, slumped on Wednesday after the company reported its fourth-quarter results. Orbotech missed analyst estimates for both revenue and earnings, sending the stock down 12% by 11 a.m. EST.
Orbotech reported fourth-quarter revenue of $215 million, up 14.2% year over year but about $4 million below the average analyst estimate. The flat panel display business posted the strongest growth, with revenue increasing 58% year over year to $71.6 million. The printed circuit board business grew at a slower 13.7% rate, producing $77.2 million of revenue. The semiconductor device business was a weak spot, with revenue slumping 11.4% to $62.1 million.
Image source: Orbotech.
Non-GAAP EPS came in at $0.70, up from $0.54 during the prior-year period but $0.07 short of analyst expectations. This number includes a negative impact from currency translation and hedging losses totaling $4.8 million, or about $0.10 per share.
Orbotech expects to report first-quarter revenue between $180 million and $190 million, compared to revenue of $190 million during the first quarter of 2016.
Orbotech CEO Asher Levy sees positive industry trends propelling the company's results in 2017:
Orbotech expects its results in 2017 to be more back-end loaded compared to previous years due to the timing of deliveries, which explains the company's lackluster guidance. Orbotech put up solid fourth-quarter numbers on an absolute basis, but fell short of expectations, prompting investors to push the stock price lower.
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