Semiconductor testing company FormFactor (NASDAQ: FORM) will be reporting earnings this Wednesday after market close. Here’s what to look for.
FormFactor beat analysts’ revenue expectations by 1.3% last quarter, reporting revenues of $202.7 million, down 2.5% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ adjusted 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, analysts are expecting FormFactor’s revenue to grow 11% year on year to $210.4 million, slowing from the 12.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.35 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FormFactor has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.8% on average.
Looking at FormFactor’s peers in the semiconductor manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Teradyne delivered year-on-year revenue growth of 43.9%, beating analysts’ expectations by 11%, and Lam Research reported revenues up 22.1%, topping estimates by 1.8%. Lam Research traded up 3.6% following the results.
Read our full analysis of Teradyne’s results here and Lam Research’s results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with share prices up 13.5% on average over the last month. FormFactor is up 18.8% during the same time and is heading into earnings with an average analyst price target of $71 (compared to the current share price of $73.05).
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