Semiconductor companies have enough cyclical volatility to frustrate most investors. Semiconductor equipment companies are even worse. Semiconductor test equipment is its own special corner of cyclical-hell, as peak-to-trough moves can easily exceed 66%. What goes down can go up again, though, and while Xcerra (NASDAQ:XCRA) (LTXC) has more than doubled over the past year, momentum in the testing market and the stock's valuation suggests there could still be more gains in store.
Beat-And-Raise In A Recovering Market
Xcerra posted 54% sequential revenue growth this quarter (and 24% yoy like-for-like growth), meeting the high end of management's guidance and exceeding sell-side expectations by a few percentage points. Core tester revenue was up about 80% sequentially, underscoring the...
|FREE||SA PRO MEMBERS|
|IDEA GENERATOR||X||Exclusive access to 10 PRO ideas every day|
|INVESTING IDEAS LIBRARY||X||Exclusive access to PRO library of more than 15,000 ideas|
|SECTOR EXPERT NETWORK||X||Exclusive access to all sector experts for direct consultation|
|PERFORMANCE TRACKING||X||Track performance of all PRO stock ideas|
|PROFESSIONAL TOOLS||X||Professional Idea Filters to zero-in based on industry, market cap and more|