Why CyberOptics Is Tuesday's Biggest Loser

CyberOptics Corp. (NASDAQ: CYBE) was one of Tuesday’s biggest losers after the company said that its second-quarter and full-year 2019 operating results will be materially affected by the cyclical, industrywide slowdown in demand for surface mount technology (SMT) and semiconductor capital equipment and continued uncertainty in the global trade environment.

According to the firm, orders for SMT and semiconductor products started to weaken during the second quarter. Despite strong year-over-year sales of 3D MRS-enabled SQ3000 AOI inspection systems, CyberOptics is now forecasting sales of $15.0 million to $15.2 million for the second quarter ending June 30, which would be at the low end of its previously issued guidance of $15.0 million to $16.5 million for this period. Second-quarter operating results will include sales of $1.1 million for MX600 memory module inspection systems.

Looking ahead, the impact of weakness in the SMT and semiconductor markets is causing CyberOptics to forecast sales of $12.0 million to $13.5 million for the quarter ending in September. The company said it expects sluggish market conditions to persist in the fourth quarter of 2019 before strengthening in early 2020.

CyberOptics is expected to report its quarterly results after the markets close on July 24. Consensus estimates are calling for $0.07 in earnings per share and $15.71 million in revenue for the fiscal second quarter.

Shares of CyberOptics were last seen down 18% at $14.67, in a 52-week range of $14.24 to $22.61. The consensus price target is $25.00.