Update: Electro Scientific Industries Q2 Earnings - Sales Fall, Orders Rebound, Cash Flow Is Positive
Martin Vlcek • Sun, Aug. 3
- Revenues continued to fall, but orders rose, operating cash flow was positive and the 4.7% dividend yield is safe for at least a few years.
- The contrarian turnaround thesis stopped materializing after orders from Apple, the single biggest customer, fell sharply. Overcapacity developed and softening consumer electronics demand also hurt.
- I reiterate my long thesis with a target price of $10 per share within 12 months, offering a ~33% upside.