Cohu (NASDAQ:COHU) Announces Quarterly Earnings Results, Misses Estimates By $0.22 EPS

Cohu (NASDAQ:COHU) issued its quarterly earnings results on Thursday. The semiconductor company reported ($0.15) earnings per share for the quarter, missing the consensus estimate of $0.07 by ($0.22), FiscalAI reports. The company had revenue of $122.23 million for the quarter, compared to analysts’ expectations of $122.09 million. Cohu had a negative return on equity of 3.73% and a negative net margin of 17.22%.Cohu’s revenue for the quarter was up 29.9% compared to the same quarter last year. During the same quarter last year, the company earned ($0.15) EPS.

Here are the key takeaways from Cohu’s conference call:

• Q4 revenue was $122.2M, up 30% year‑over‑year, with recurring revenue at ~60% of sales and full‑year orders up 29% — management says recurring bookings rose 34% sequentially, signaling improving demand stability.
• Multiple design wins and product traction were highlighted, including Eclipse handler high‑performance orders (qualification unit shipping this summer), Krypton and Neon (HBM) inspection wins, and expanded Diamondx tester deployments; Neon HBM exited 2025 at $11M with a 2026 forecast of $15–20M.
• Q4 gross margin of 40.8% missed guidance due to one‑time inventory charges (management estimates ~350 bps impact) from product discontinuations and consolidation, although they expect margins to rebound to ~45% in Q1 and move higher as revenue ramps.
• Liquidity strengthened via an upsized convertible notes offering that raised $287.5M (1.5% coupon, 32.5% conversion premium), boosting cash and investments to $484M while using a capped call to limit near‑term dilution; total debt stands at $305M.

Cohu Stock Down 4.0%

Cohu stock traded down $1.36 during mid-day trading on Thursday, hitting $32.80. The company had a trading volume of 1,687,288 shares, compared to its average volume of 868,838. The company has a quick ratio of 3.24, a current ratio of 4.39 and a debt-to-equity ratio of 0.01. Cohu has a 1 year low of $12.57 and a 1 year high of $34.96. The business has a fifty day moving average of $26.70 and a 200 day moving average of $23.23. The stock has a market cap of $1.53 billion, a price-to-earnings ratio of -20.89 and a beta of 1.29.

Institutional Inflows and Outflows

A number of hedge funds have recently modified their holdings of COHU. Marshall Wace LLP acquired a new stake in Cohu during the 2nd quarter worth $273,000. iSAM Funds UK Ltd purchased a new position in shares of Cohu during the third quarter worth about $248,000. Franklin Resources Inc. purchased a new position in shares of Cohu during the third quarter worth about $244,000. Russell Investments Group Ltd. increased its position in shares of Cohu by 8.1% during the third quarter. Russell Investments Group Ltd. now owns 11,108 shares of the semiconductor company’s stock worth $226,000 after purchasing an additional 830 shares in the last quarter. Finally, Fox Run Management L.L.C. purchased a new stake in shares of Cohu in the 4th quarter valued at about $219,000. 94.67% of the stock is owned by hedge funds and other institutional investors.

Analyst Ratings Changes

A number of brokerages have recently commented on COHU. Weiss Ratings reissued a “sell (d-)” rating on shares of Cohu in a research report on Wednesday, January 21st. Stifel Nicolaus lifted their price target on shares of Cohu from $30.00 to $32.00 and gave the stock a “buy” rating in a research note on Wednesday, January 14th. TD Cowen reiterated a “buy” rating on shares of Cohu in a report on Thursday, October 30th. B. Riley Financial raised their price objective on shares of Cohu from $30.00 to $35.00 and gave the company a “buy” rating in a report on Monday, January 26th. Finally, Needham & Company LLC upgraded shares of Cohu from a “hold” rating to a “buy” rating and set a $30.00 target price for the company in a research note on Tuesday, January 6th. Four analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, Cohu currently has a consensus rating of “Moderate Buy” and a consensus target price of $31.75.

Cohu Company Profile

Cohu, Inc is a global provider of semiconductor test and inspection solutions, offering a broad portfolio of products designed to support chip manufacturers, outsourced semiconductor assembly and test (OSAT) providers, and electronics original equipment manufacturers (OEMs). The company’s product lineup includes automatic test handlers, wafer probers, test sockets, thermal subassembly systems and burn-in boards, all engineered to optimize throughput, accuracy and reliability in semiconductor production and final test.

Founded in 1947 and headquartered in Poway, California, Cohu has grown through both organic development and targeted acquisitions to become a recognized leader in test handling and interconnect technologies.