ACM Research Inc - Class A

ACM Research delivered a mixed third quarter for fiscal 2025, posting strong revenue growth that masked a notable earnings disappointment and a sharp margin contraction. Revenue came in at $269.16 million, clearing the $251.72 million consensus by 6.93% and marking a 32.0% year-over-year gain, as demand broadened across cleaning, ECP, furnace, and advanced packaging product lines. Earnings per share of $0.52, however, fell just short of the $0.53 consensus estimate, with gross margin compressing severely to 42.0% from 51.4% a year ago, landing at the low end of the company's long-term target range, as unfavorable product mix, currency headwinds, and inventory provisions weighed heavily on profitability. Operating income fell to $28.92 million from $44.18 million, even as the company accelerated R&D spending to $39.65 million to fund next-generation tool development. On the product front, ACM delivered its first horizontal plating tool for panel-level packaging, generating broad customer interest. Looking ahead, management narrowed its fiscal 2025 revenue guidance to $875 million to $925 million, reaffirming its long-term $4 billion revenue target.