What Happened?
Shares of semiconductor production equipment provider Amtech Systems (NASDAQ: ASYS) jumped 3.2% in the afternoon session after the stock continued its recent downward slide amid technical weakness and lingering concerns from a previous earnings report.
The stock's decline extended a negative trend from the previous week, which included a technical sell signal being issued on July 23rd. The weak sentiment appeared to be rooted in the company's second-quarter fiscal 2025 guidance. Amtech announced both its revenue and adjusted EBITDA guidance below estimates. The company attributed the miss to a delayed shipment and an extended downturn in the capital equipment market for its mature node semiconductor clients, which resulted in non-cash impairments and inventory write-downs.
After the initial pop the shares cooled down to $4.80, up 1.1% from previous close.
Is now the time to buy Amtech? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Amtech’s shares are very volatile and have had 24 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The biggest move we wrote about over the last year was 8 months ago when the stock dropped 14.4% on the news that the company reported weak financial results for the third quarter (FQ4 2024). Revenue guidance for the next quarter missed significantly, and its EPS fell short of Wall Street's estimates. Sales declined 13% year on year amid a challenging operating environment. Sequentially, management attributed the revenue weakness to "decreased sales of our diffusion furnaces, advanced packaging, and wafer cleaning equipment." Overall, this was a weaker quarter.
Amtech is down 14.3% since the beginning of the year, and at $4.80 per share, it is trading 28.8% below its 52-week high of $6.74 from August 2024. Investors who bought $1,000 worth of Amtech’s shares 5 years ago would now be looking at an investment worth $950.06.
Do you want to know what moves the business you care about? Add them to your StockStory watchlist and every time a stock significantly moves, we provide you with a timely explanation straight to your inbox. It’s free and will only take you a second.
