Bull Of The Day: Kulicke and Soffa (KLIC) – March 13, 2018


Kulicke and Soffa (KLIC Free Report) is a Zacks Rank #1 (Strong Buy) and carries a growth Style Score of “A” and that alone with get the stock on my aggressive growth radar screen.  Let’s take a look at why this stock is a Zacks Rank #1 (Strong Buy) and why it became the Bull Of The Day.


Kulicke & Soffa is a leading provider of semiconductor packaging and electronic assembly solutions supporting the global automotive, consumer, communications, computing and industrial segments. As a pioneer in the semiconductor space, K&S has provided customers with market leading packaging solutions for decades. In recent years, K&S has expanded its product offerings through strategic acquisitions and organic development, adding advanced packaging, electronics assembly, wedge bonding and a broader range of expendable tools to its core offerings. Combined with its extensive expertise in process technology and focus on development, K&S is well positioned to help customers meet the challenges of packaging and assembling the next-generation of electronic devices.


KLIC has an impressive streak of 9 beats of the Zacks Consensus Estimate.  The last four have been very impressive with the company posting a posting an average positive earnings surprise of 49%.

The most recent report saw the company come in with $0.51 when $0.26 was expected.  That $0.25 beat translates into a 96% positive earnings surprise.  

Following the most recent earnings report, estimates have moved higher.


60 days ago, the Zacks Consensus Estimate was at $1.69, but it has shot higher following the big beat.  The current year estimate now states at $2.23.

The move was not regulated to this year alone, as estimates for next fiscal year also moved higher.  Prior to the beat, the Zacks Consensus Estimate was at $1.98 and is now at $2.45.


KLIC trades at 12x trailing and 11.2x forward earnings estimates and that is well below the industry average of 18x.  The company also shows a discount to the industry multiple for price to book at 2x compared to 3.3x as well as price to sales of 2x compared to an industry average of 3.1x.


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2018-03-13 16:08:00

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