Cohu Inc (NASDAQ:COHU)
Cohu Inc.(COHU), a leading supplier of semiconductor test and inspection handlers company yesterday reported their fourth quarter 2016 operating results. Cohu reported fourth quarter adjusted earnings of $0.24 per share which beat analyst estimates of $0.09 per share. Cohu reported fourth quarter revenues of $70.7 million which beat analyst estimates of $65.1 million.
Cohu, Inc.CEO’s Comments
Luis Müller, President and Chief Executive Officer of Cohu, stated, “We delivered growth in fiscal 2016 with sales up 4.6% year-on-year, a non-GAAP income increase of 20% and approximately 2-points market share gain in test handlers. We also grew our contactor business and executed the acquisition of Kita, creating sales synergy opportunities at Cohu’s large installed base of handlers at automotive and mobile customers.”
Müller concluded, “We started 2017 with strong order momentum and a plan to further expand sales and profitability. Customer and end-market diversification as well as growing revenue contribution from recurring, that includes test contactors, are driving improved predictability in the business model.” Business Wire
COHU Technical Analysis
COHU opened trading yesterday at $13.37 which was exactly the same as the previous day’s trading close. Shares closed trading yesterday at $13.64 and spiked up after market to $14.85, equivalent to a 9% increase from the closing price. Taking a look at the daily chart we can see that the last time COHU traded above these levels we have to go all the way back to March 2011 when it traded at $15.36.
Taking a closer look at the daily chart we can see that before the spike up COHU had already been in an overall upward trend dating back to October 26th, 2016 when it traded at $10.80. COHU has a float of 25.8 million shares and traded 1.86 times the normal daily trading volume on Thursday. For trading purposes, I would like to see COHU open trading on Friday above $14.45 and if it does I would be looking to take a long position at the bell. My stop loss would be $0.20 from my entry position fearing anything more than that and the stock would start to fill in the gap up.
Company Profile
Cohu, Inc. engages in the development, manufacture, sale, and servicing of semiconductor test and inspection handlers, micro-electro mechanical system (MEMS) test modules, test contactors, and thermal sub-systems for semiconductor manufacturers and test subcontractors worldwide. It offers pick-and-place test handlers; thermal handler for microprocessors, graphics processors, and other integrated circuits; gravity-feed and test-in-strip handlers; and turret handler for testing and inspection of integrated circuits, light emitting diodes, and discrete devices.
The company also provides MEMS test modules that generate physical stimuli for testing of sensor integrated circuits; thermal sub-systems that offers temperature control of the integrated circuit during the testing process; contactor solutions; spares; and a range of device dedication kits that enable handlers to process various semiconductor packages. It markets its products through direct sales force and independent sales representatives. The company was formerly known as Cohu Electronics, Inc. and changed its name to Cohu, Inc. in 1972. Cohu, Inc. was founded in 1947 and is headquartered in Poway, California.