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Advanced Energy Industries (AEIS) smashed analyst estimates with its third-quarter report and guidance. The news sent AEIS stock surging on Wednesday. The Denver-based company late Tuesday said it earned an adjusted $1.74 a share on sales of $463.3 million in the third quarter. Analysts polled by FactSet had expected Advanced Energy to earn $1.47 a share on sales of $441.6 million. On a year-over-year basis, its earnings jumped 78% while sales increased 24%. For the current quarter, Advanced Energy expects to earn an adjusted $1.75 a share on sales of $470 million. That's based on the midpoint of its outlook. Wall Street was modeling fourth-quarter earnings of $1.53 a share on sales of $445.8 million. In the same quarter last year, the company earned $1.30 a share on sales of $415.4 million. Advanced Energy Industries makes precision power conversion and control equipment for semiconductor manufacturing, data centers and other markets. In morning trades on the stock market today, AEIS stock rose nearly 13% to 220.07. Earlier in the trading session, it hit an all-time high of 230.46. "Third-quarter results surpassed the high end of our guidance due to increased demand for our AI data center solutions," Chief Executive Steve Kelley said in a news release. "With strong customer pull for our next-generation products, we are well on our way to meet or exceed the long-term financial goals presented at our 2024 Analyst Day." AEIS Stock Is On Two IBD Lists At least four analysts raised their price targets on AEIS stock after the company's Q3 report. KeyBanc Capital Markets analyst Steve Barger reiterated his overweight, or buy, rating on AEIS stock and upped his price target to 240 from 195. "AEIS reported a strong beat and guide before a bullish call," Barger said in a client note. "Data center (business) was the highlight, which will be up 2x this year and 25-30% next year." AEIS stock is on two IBD lists: Stock Spotlight and Tech Leaders. Follow Patrick Seitz on X at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks. YOU MAY ALSO LIKE: Spotify Rocks Q3 Financial Beat, But Gives Mixed Outlook Nvidia Stock Scores Price-Target Hikes On Latest AI Chip Deals Discover Profitable Trades Each Day With MarketDiem. See How. Find Winning Stocks With MarketSurge Pattern Recognition & Custom Screens
