Onto Innovation's (ONTO) Echo System Boasts $20M in Backlog

Onto Innovation ONTO has launched Echo system to expand its acoustic metrology product line.

The company also plans to further expand the addressable market for in-line characterization of opaque films, which is projected to be worth $110 million. The Echo system currently has an order backlog of $20 million.

Onto Innovation Inc. Price and Consensus

Onto Innovation Inc. price-consensus-chart | Onto Innovation Inc. Quote

Onto plans to tap the growing demand for vertical NAND devices and film deposition with the product launch.

The Echo system utilizes the picosecond ultrasonics principle to deliver crucial metal film metrology for the DRAM and high-stack NAND memory markets, enabling better memory bandwidth and bit density.

Per data from the Mordor Intelligence report, the NAND flash memory market is likely to witness a CAGR of 5.33% between 2022 and 2027.

Onto Innovation is focused on process control and is well-positioned to capitalize on every aspect of the semiconductor industry, including 5G, 3D NAND and advanced packaging.

It also offers metal thickness and characterization for various devices in the specialty segments, such as RF filters for 5G communications and power devices for the rapidly expanding electric vehicle and high-speed portable charger industries.

The Echo system functions at three times the signal-to-noise ratio (SNR) of existing products. SNR is a tool in science and engineering to compute the difference between the desired signal and the noise floor.

It is also capable of handling single or multilayer film measurements from 50A to 35µm and 100-300mm wafer sizes. On-wafer metrology measurements are employed in a closed-loop feedback method to implement run-to-run process control on important film deposition processes.

Onto Innovation specializes in designing, manufacturing and marketing process control systems for 2D and 3D macro inspection, optical critical dimension metrology and wafer inspection.    

Onto Innovation reported first-quarter 2022 earnings of $1.31 per share, rising 79% year over year and beating the Zacks Consensus Estimate by 12.93%.

The top line grew 43% year over year. The performance was driven by higher demand from several end markets, particularly advanced nodes, specialty devices and advanced packaging.

For the second quarter, the Zacks Consensus Estimate for revenues stands at $241.5 million. The consensus mark for earnings is pegged at $1.26 per share.

Shares of Onto Innovation have lost 7.9% in the past year compared with the industry’s decline of 22%.

Image Source: Zacks Investment Research

Zacks Rank & Stocks to Consider

ONTO carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the broader technology space are Aspen Technology AZPN, Synopsys SNPS and Broadcom AVGO, each sporting a Zacks Rank #1 (Strong Buy).You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Aspen Technology’s 2022 earnings is pegged at $5.50 per share, increasing 1.5% in the past 60 days. The long-term earnings growth rate is anticipated to be 18.4%.

Aspen Technology’s earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 4.1%. Shares of AZPN have soared 31.3% in the past year.

The Zacks Consensus Estimate for Synopsys 2022 earnings is pegged at $8.47 per share, rising 7.2% in the past 60 days. The long-term earnings growth rate is anticipated to be 19.6%.

Synopsys earnings beat the Zacks Consensus Estimate in the last four quarters, the average being 2.7%. Shares of SNPS have jumped 13.1% in the past year.

The Zacks Consensus Estimate for Broadcom’s fiscal 2022 earnings is pegged at $37.06 per share, up 3.9% in the past 60 days. AVGO’s expected long-term earnings growth rate is 14.5%.

Broadcom’s earnings beat the Zacks Consensus Estimate in all the preceding four quarters, with the average being 2.2%. Shares of AVGO have lost 0.6% in the past year.

Zacks Names "Single Best Pick to Double"

From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.

It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.

This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.