Cohu Inc. (NASDAQ:COHU) shares have been steadily increasing over the last twelve months due to the company’s expansion strategies and substantial growth in its financial numbers. Cohu share price increased by 56% in the last twelve months – with a 52-week trading range of $15.55 to $26.17 a share.
Financial Numbers Support the Uptrend
The company has been generating robust growth in its financial numbers. This is mostly driven by the increasing demand within semiconductor industries.
Cohu Inc.’s revenue grew 17% year-over-year in the first quarter to $95.2 million this year. Meanwhile, its earnings jumped from $6.8 million to $8 million since the same period last year. The company expects its full-year sales to stand in the range of $400 million, excluding the Xcerra acquisition.
Cohu CEO Luis Müller said, “We have solid order momentum and good visibility into automotive, IoT and industrial markets and project first half 2018 sales to grow approximately 11% year-over-year.”
Cohu Share Price Growth Prospects
Cohu Inc. recently announced its plan to acquire its closest competitor Xcerra (NASDAQ:XCRA) for the enterprise value of approximately $627 million. The acquisition of Xcerra will strengthen Cohu’s position in the back-end semiconductor equipment sector. Cohu believes the Xcerra acquisition project has the potential to enlarge its annual revenue base to $800 million this year.
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Besides growth prospects from acquiring Xcerra, Cohu Inc. has also been investing in various product innovations and organic growth opportunities. Its thermal subsystems tests for mobile processors have been attracting new clients. Additionally, the company has also recently launched the new Eclipse XTA to test a variety of semiconductors. The Eclipse XTA enables interface with factory robots, processes monitoring capabilities, and incorporates new diagnostics. Overall, the company is setting the footholds to strengthen its market position in the semiconductor industry.
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