Benzinga | Aug 4, 2021 03:24PM EDT

Advanced Energy Industries Stock Tanks On Q2 Earnings Miss; Q3 Outlook Lags Consensus

* Advanced Energy Industries Inc (NASDAQ:AEIS) reported second-quarter FY21 sales growth of 6.3% year-on-year to $361.3 million, missing the analyst consensus of $362.14 million.

* Revenues from Semiconductor Equipment grew 21.5% Y/Y to $176.7 million, Industrial and Medical increased 17.4% Y/Y to $83.2 million,

* Data Center Computing declined 16.6% Y/Y to $69.5 million, and Telecom and Networking decreased 20.5% Y/Y to $31.99 million.

* The non-GAAP gross margin contracted 70 bps to 38%, and the non-GAAP operating margin contracted 70 bps to 15.1%.

* Non-GAAP EPS of $1.25 missed the analyst consensus of $1.27.

* Advanced Energy generated $33.8 million in operating cash flow, repurchased stock worth $6.5 million, and paid $3.9 million in dividends.

* On Jul. 29, the board increased the company's stock repurchase authorization to $200 million.

* Although the near-term supply chain and operating environment remain challenging, demand continues to strengthen across all its markets, and it has solid visibility into 2022, CEO Steve Kelley stated.

* Outlook: Advanced Energy sees Q3 revenue of $325 million - $355 million below the analyst consensus of $377.84 million.

* It sees non-GAAP EPS between $0.60-$1.00 below the analyst consensus of $1.40.

* Price action: AEIS shares traded lower by 11.4% at $91.14 on the last check Wednesday.