Zacks Investment Research downgraded
Axcelis Technologies Inc.
) to a Zacks Rank #5 (Strong Sell) on Mar 26, 2014.
Going by the Zacks model, companies holding a Zacks Rank #5
have strong chances of performing worse than the broader market.
Hence, investors seeking exposure to electrical machinery
manufacturers are advised to avoid investing in or to sell their
existing holdings in Axcelis Technologies.
Why the Downgrade?
AXCELIS TECH (ACLS): Free Stock Analysis
CANADIAN SOLAR (CSIQ): Free Stock Analysis
TESSERA TEC INC (TSRA): Free Stock Analysis
ULTRA CLEAN HLD (UCTT): Free Stock Analysis
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Market sentiments have been weak since Axcelis Technologies
reported its fourth-quarter and 2013 results on Feb 4, 2014.
Since then, the share price of the company has fallen 5.4%. A
snapshot of the company's fourth-quarter and 2013 results is
Earnings per share in the quarter were 1 cent, in line with the
Zacks Consensus Estimate, while revenues increased 31% year over
year to $58.6 million. For 2013, the company reported a loss per
share of 16 cents. Revenues generated were $195.6 million, down
3.8% year over year.
Fourth-quarter and 2013 results triggered downward revisions in
earnings estimates for Axcelis Technologies. In the last 60 days,
the Zacks Consensus Estimate for earnings per share has decreased
45.8% to 13 cents for 2014. The estimate for 2015 is pegged at 25
This, along with the negative average earnings surprise of 6.7%
for the trailing 4 quarters, raises concern over Axcelis
Technologies' performance in the quarters ahead.
Other Stocks to Consider
Axcelis Technologies has a $252 million market capitalization.
Some better-ranked stocks in the industry include
Tessera Technologies Inc.
Ultra Clean Holdings Inc.
Canadian Solar Inc.
), all with a Zacks Rank #1 (Strong Buy).