Semiconductor testing company FormFactor (NASDAQ: FORM) will be reporting results tomorrow after the bell. Here’s what investors should know.
FormFactor beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $197.5 million, up 26.7% year on year. It was an exceptional quarter for the company, with a significant improvement in its gross margin and an impressive beat of analysts’ EBITDA estimates.
Is FormFactor a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting FormFactor’s revenue to grow 16.7% year on year to $200.3 million, a reversal from the 5.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.31 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FormFactor has missed Wall Street’s revenue estimates twice over the last two years.
Looking at FormFactor’s peers in the semiconductor manufacturing segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 4.8%, beating analysts’ expectations by 3%, and Lam Research reported revenues up 19.7%, topping estimates by 2.7%. Teradyne traded down 11.1% following the results while Lam Research was up 4.8%.
Read our full analysis of Teradyne’s results here and Lam Research’s results here.
Investors in the semiconductor manufacturing segment have had steady hands going into earnings, with share prices flat over the last month. FormFactor is down 1.4% during the same time and is heading into earnings with an average analyst price target of $60.33 (compared to the current share price of $45.34).
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