PDF Solutions (PDFS), a software provider to the semiconductor industry, saw its shares spike to a record high on Friday after the company posted better-than-expected results for the fourth quarter. PDFS stock tacked on gains to its recent breakout.
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The Santa Clara, Calif.-based company late Thursday said it earned an adjusted 19 cents a share on sales of $40.5 million in the December quarter. Analysts polled by FactSet had predicted earnings of 11 cents a share on sales of $36.5 million. On a year-over-year basis, PDF Solutions earnings rocketed 171% while sales increased 36%.
For full year 2022, PDF Solutions earned an adjusted 60 cents a share, up 650%, on sales of $148.5 million, up 34%.
The company expects 2023 revenue to grow in the midteens percentage range, despite macroeconomic headwinds.
PDFS Stock Hits All-Time High
“We are pleased with how we are positioned for 2023 and look forward to serving our customers,” Chief Executive John Kibarian said in a news release.
PDF Solutions provides data analytics for the semiconductor industry. Its software helps chip companies increase their profitability by improving operational efficiency.
In morning trades on the stock market today, PDFS stock rose 6.2% to 36.12. Earlier in the session, PDFS stock climbed as much as 10.6% to a record high 37.64.
On Jan. 26, PDFS stock hit a buy point of 32.66 out of a cup base, according to IBD MarketSmith charts.
PDF Solutions Stock Gets Target Hike
Rosenblatt Securities analyst Blair Abernethy reiterated his buy rating on PDFS stock after the report. He also raised his 12-month price target to 37.50 from 33.
“With its expanded product offering, upselling opportunity, long-term potential for its emerging Design-For-Inspection System, and growing backlog, we see PDF Solutions as being well positioned for continued growth ahead despite the near-term macro semi-industry headwinds,” Abernethy said in a note to clients.
PDFS stock ranks first out of 12 stocks in IBD’s Computer Software-Design industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 97 out of 99.
IBD’s Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better. Further, PDFS stock is on the IBD Tech Leaders stock list.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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