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Mar 31, 2020

Advanced Energy Q1 2020 Earnings Report

Advanced Energy's Q1 2020 results were announced, demonstrating strong performance across financial metrics amidst a global pandemic.

Key Takeaways

Advanced Energy reported Q1 2020 revenue of $315.5 million, GAAP EPS of $0.48, and non-GAAP EPS of $0.91. The company generated $28.9 million in operating cash flow and repurchased approximately 170,000 shares for $7.2 million.

Q1 revenue was $315.5 million, exceeding the guidance midpoint of $310 million.

Q1 GAAP EPS from continuing operations was $0.48.

Q1 Non-GAAP EPS was $0.91, surpassing the guidance midpoint of $0.70.

The company executed well to deliver strong results across all financial metrics.

Total Revenue
$315M
Previous year: $141M
+124.1%
EPS
$0.91
Previous year: $0.58
+56.9%
Gross Profit
$112M
Previous year: $65.7M
+70.7%
Cash and Equivalents
$353M

Advanced Energy

Advanced Energy

Advanced Energy Revenue by Segment

Advanced Energy Revenue by Geographic Location

Forward Guidance

The company provided guidance for the second quarter of 2020, with revenues expected to be $315 million +/- $30 million, GAAP EPS from continuing operations of $0.53 +/- $0.30, and Non-GAAP EPS of $0.80 +/- $0.30.

Positive Outlook

  • Revenue expected to be $315 million +/- $30 million.
  • GAAP EPS from continuing operations expected to be $0.53 +/- $0.30.
  • Non-GAAP EPS expected to be $0.80 +/- $0.30.
  • Stock-based compensation to be 0.07.
  • Amortization of intangible assets to be 0.14.

Challenges Ahead

  • The effects of global macroeconomic conditions upon demand for products and services.
  • The volatility and cyclicality of the industries the company serves, particularly the semiconductor industry.
  • Delays in capital spending by end-users in served markets.
  • The risks and uncertainties related to the acquisition and integration of Artesyn Embedded Power including the optimization and reduction of global manufacturing sites.
  • The recent outbreak of Covid-19 and its potential adverse impact on product manufacturing, research & development, supply chain, services and administrative operations.

Revenue & Expenses

Visualization of income flow from segment revenue to net income