Cohu Inc. (COHU) shares are soaring 6.53% in pre-market trading on Friday following the release of its first-quarter 2025 financial results, which surpassed analysts' expectations. The semiconductor equipment manufacturer reported a smaller-than-anticipated loss and showed signs of potential growth in key areas.

According to the earnings report, Cohu posted an adjusted loss of 2 cents per share for the quarter ended March 31, significantly better than the mean expectation of a 17-cent loss from five analysts. While revenue fell 10.1% year-over-year to $96.80 million, it still marginally beat the Street's forecast of $96.61 million. The company also reported a 28% quarter-over-quarter increase in recurring orders, indicating potential utilization improvements in the coming quarters.

Despite the challenging market conditions, analysts maintain a positive outlook on Cohu. Stifel reiterated its "Buy" rating, although it lowered the price target to $28 from $35. TD Cowen analyst Krish Sankar also maintained a "Buy" rating, citing the company's growth potential and strategic initiatives. The average consensus recommendation for Cohu remains "Buy," with Wall Street's median 12-month price target set at $26.50, suggesting confidence in the company's future performance.