Stocks

Headlines

Cohu, Inc. Reports Bigger Loss with Cautious Optimism

Cohu, Inc. announced a first-quarter net loss of $30.8 million, worse than last year’s $14.6 million. Despite the losses, the company's outlook remains optimistic, with future sales expected between $99M and $113M.

Date: 
AI Rating:   5
Earnings Per Share (EPS)
Cohu's EPS declined significantly, reporting a loss of $0.66 for the first quarter of 2025, compared to a loss of $0.31 in the previous year. Additionally, the adjusted income also reflected losses of $0.02 per share versus an adjusted income of $0.01 last year. This sharp decline in earnings signals potential issues in profitability and could negatively influence investor sentiment.

Revenue Growth
Net sales decreased to $96.8 million from $107.6 million year-over-year, indicating a decline in revenue growth. While the company had anticipated lower sales due to market conditions, the loss of approximately $10.8 million in sales year-over-year raises questions about demand and operational efficiency. However, future guidance projects sales in the range of $106 million ± $7 million for the second quarter, which provides a semblance of optimism but still shows a weak trajectory compared to previous quarters.

Profit Margins
The report does not specifically mention profit margins; however, the increased losses alongside the decline in revenue indicate deteriorating profit margins, which might be concerning for investors.

Market Position and Strategic Outlook
On a positive note, Cohu's President and CEO highlighted several design wins and the signing of new customers for AI process monitoring demonstrations, suggesting a strategic pivot to capture growth from new technology and market segments. The reference to expansion into new markets and a pick-up in recurring orders may present growth opportunities moving forward.

Overall, while the losses and declining revenue indicate significant short-term challenges, the company’s focus on new markets and customer expansion suggests potential for recovery in the medium to long term. Investors should be cautious, considering the current losses and historical performance while monitoring future earnings and revenue growth closely.
Stocks:  COHU