NEW YORK ( TheStreet) -- Axcelis Technologies (Nasdaq: ACLS) has been upgraded by TheStreet Ratings from sell to hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, increase in net income and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we find that the company's return on equity has been disappointing.
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- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 49.16% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Semiconductors & Semiconductor Equipment industry average. The net income increased by 10.4% when compared to the same quarter one year prior, going from -$10.03 million to -$8.99 million.
- AXCELIS TECHNOLOGIES INC has improved earnings per share by 11.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, AXCELIS TECHNOLOGIES INC swung to a loss, reporting -$0.31 versus $0.05 in the prior year. This year, the market expects an improvement in earnings (-$0.12 versus -$0.31).
- 35.20% is the gross profit margin for AXCELIS TECHNOLOGIES INC which we consider to be strong. Regardless of ACLS's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, ACLS's net profit margin of -22.06% significantly underperformed when compared to the industry average.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Semiconductors & Semiconductor Equipment industry and the overall market, AXCELIS TECHNOLOGIES INC's return on equity significantly trails that of both the industry average and the S&P 500.