Advanced Energy Industries AEIS reported mixed fourth-quarter 2023 non-GAAP earnings of $1.24 per share, beating the Zacks Consensus Estimate by 7.83%. However, the bottom-line figure declined 27.1% on a year-over-year basis.

Revenues of $405 million lagged the Zacks Consensus Estimate by 0.59% and declined 17.4% year over year primarily due to the weakness across the Industrial & Medical and Data Center Computing end-markets.

Despite this decline, the backlog was $407 million at the end of the reported quarter.

The company's expansion is noteworthy. In 2023, AEIS launched 20 new products across its markets.

Advanced Energy Industries, Inc. Price, Consensus and EPS Surprise

Advanced Energy Industries, Inc. price-consensus-eps-surprise-chart | Advanced Energy Industries, Inc. Quote

End Market in Detail

Semiconductor Equipment: Revenues (47.2% of the total revenues) generated from the market fell 17.7% year over year to $191 million. The figure topped the Zacks Consensus Estimate by 6.52%.

Sequentially, revenues increased 3%. AEIS witnessed a strong performance in high-voltage products, highlighted by the successful launch of eVerest and eVoS for etch and deposition applications.

During the fourth quarter, the shipment of eVerest and eVoS experienced a notable surge, reaching a total of 80 units. Additionally, a more advanced and higher-flow version of the MAXstream remote plasma source product was successfully delivered.

Industrial & Medical: Revenues (26.8% of the total revenues) from the market fell 9% year over year to $109 million and lagged the Zacks Consensus Estimate by 10.04%.

Soft market conditions hurt top-line growth.

Sequentially, revenues declined 6%. Nevertheless, Advanced Energy managed to secure noteworthy design wins in the reported quarter, particularly in robotics, test and measurement, mill arrow and indoor farming applications.

AEIS also responded to the market demands by introducing the NeoPower family of configurable power supplies to address the demand for higher power in a more compact form, boasting best-in-class power density for industrial and medical customers.

Data Center Computing: Revenues (15.5% of the total revenues) from the market were $63 million, down 33.5% year over year. The figure missed the consensus mark by 14.17%.

Sequentially, revenues declined 8%. However, the softness in the enterprise market was partially offset by the increased volume of the hyperscale product.

Telecom & Networking: Revenues (10.5% of the total revenues) generated from the market were $42.44 million, down 4.5% year over year. The figure beat the Zacks Consensus Estimate by 38.98%.

Sequentially, revenues increased 2%. Robust year-end telecom shipments drove top-line growth.