- Qnity's Q3 revenue rose 22% year over year to $1.56 billion, above the $1.49 billion LSEG-compiled consensus.
- Adjusted EPS rose 55% to $1.46, above the $1.20 expected.
- Management raised guidance for sales and earnings, with the outlook exceeding expectations.
- Shares fell nearly 6% to session lows mid-morning and recovered most of those losses later in the day.
- The analyst reiterated a buy-equivalent 1 rating and cut the price target to $165 from $180, implying 38% upside from current levels.
- CEO Jon Kemp cited DRAM capacity utilization in the high 80% range and NAND production in the low- to mid-80s, both improved from a year earlier.
Quotes
“Once equipment is installed, process qualifications can take 12 to 18 months. From there, materials demand builds as customers ramp toward full capacity.”
“multiyear opportunity”