Semiconductor testing company FormFactor (NASDAQ: FORM) will be reporting earnings this Wednesday after the bell. Here’s what to look for.
FormFactor beat analysts’ revenue expectations last quarter, reporting revenues of $258.2 million, up 31.9% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and a solid beat of analysts’ operating income estimates.
Is FormFactor a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting FormFactor’s revenue to grow 33.5% year on year, a reversal from the 2.5% decrease it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. FormFactor rarely misses Wall Street’s revenue estimates.
Looking at FormFactor’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Lam Research delivered year-on-year revenue growth of 54.4%, meeting analysts’ expectations, and Amkor reported flat revenue, falling short of estimates by 1.1%. Lam Research traded down 11.8% following the results.
Read our full analysis of Lam Research’s results here and Amkor’s results here.
Over the past year, investors have repeatedly shifted their focus from one macro narrative to another (AI disruption and AI capex spending to geopolitics, interest rates, and the broader health of the economy). While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 11.2% on average over the last month. FormFactor is down 21.6% during the same time and is heading into earnings with an average analyst price target of $152.22 (compared to the current share price of $102.64).
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