Singapore-based semiconductor equipment maker Kulicke and Soffa Industries achieved profitability and raised its earnings outlook following its results for the third quarter of the fiscal year ending September 2026 and its fourth-quarter outlook. The company is advancing share repurchases, restoring its investment appeal.
In its latest earnings report, the company announced revenue of $330 million and net income of $57.42 million for the third quarter of the fiscal year ending September 2026, marking a return to profitability from a loss in the same quarter of the previous year. It forecast fourth-quarter revenue of approximately $375 million and GAAP diluted EPS of approximately $1.29.
Against the backdrop of its earnings recovery, the company is reducing its outstanding share count and has completed the repurchase of 1,962,177 shares for approximately ¥12 billion since November 2024. The latest closing share price was $91.31, down approximately 19% over the past 30 days but up approximately 89% year to date.
In discussions surrounding fair value, one research firm considers $106.67 reasonable and assumes a growth-oriented earnings trajectory incorporating revenue growth of approximately 22.8%. There has also been commentary that the P/E ratio could fall below its current level.
Going forward, demand trends for thermocompression bonding, advanced packaging, and power semiconductor equipment, together with capacity utilization at memory fabs, are expected to be key to a reassessment of the company’s earnings outlook. The investment case may look different depending on execution and market conditions.