NEW YORK (TheStreet) -- Advanced Energy (AEIS) stock dropped on Tuesday after the company recorded first-quarter results below analysts' estimates and issued below-consensus guidance for its second quarter.
By market close, shares had dropped 21.1% to $16.87.
In its March-ending quarter, the maker of power conversion tools earned 43 cents a share. Revenue of $141 million fell short of estimates of $142.6 million, according to analysts surveyed by Thomson Reuters.
For its second quarter, management guided for sales between $135 million and $145 million with earnings of 34 cents to 40 cents a share. Analysts had anticipated $145.3 million in sales and 40 cents a share in profits.
"Consistent with industry reports, OEM customers are seeing a decline in their second quarter bookings compared to the last six months. This is resulting in lower order rates, balanced out to an extent by our diversified product portfolio," the company explained in a statement.
TheStreet Ratings team rates ADVANCED ENERGY INDS INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate ADVANCED ENERGY INDS INC (AEIS) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, impressive record of earnings per share growth and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook."
- You can view the full analysis from the report here: AEIS Ratings Report