We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
FormFactor Q3 Earnings Beat Estimates, Stock Declines on Weak View
Read MoreHide Full Article
FormFactor (FORM - Free Report) delivered third-quarter 2024 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate by 12.90%. The figure jumped 59.1% year over year.
FORM’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, met in one, and missed in the remaining one, the average surprise being 5.14%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
However, shares dropped 13.31% to close at $37.98 on Thursday due to an unimpressive fourth-quarter 2024 guidance. Year to date, FormFactor shares have gained 13.6% compared with the Zacks Computer & Technology sector’s appreciation of 41.6%.
FormFactor, Inc. Price, Consensus and EPS Surprise
Revenues of $207.9 million beat the Zacks Consensus Estimate by 3.7% and increased 21.2% year over year. Top-line growth was driven by continued strength in the DRAM probe-card business, which increased 118.9% year over year.
Probe card revenues were $172.2 million, up 34.1% year over year.
Foundry & Logic revenues (accounting for 51.7% of the total revenues) were $107.5 million, up 11.5% year over year.
DRAM revenues (29% of revenues) were $60.2 million, up 118.9% year over year. Strong DDR5 demand drove a third consecutive record-setting quarter for DRAM probe-card revenues. The company expects continued growth in DRAM probe-card revenues in the fourth quarter.
Flash revenues (2.2% of the total revenues) were $4.5 million. The reported figure was unchanged year over year.
Systems revenues (17.2% of the total revenues) were $35.7 million, down 17.4% year over year.
Revenues generated from the United States, Taiwan, South Korea, China, Japan, Singapore, and the rest of the world increased 25.9%, 11.4%, 18.8%, 58.3%, 15.7%, 48.6% and 5%, respectively, year over year.
Revenues generated from Europe and Malaysia declined 16.1% and 11.7%, respectively, year over year.
FORM’s Operating Results
In the third quarter of 2024, the gross margin increased 40 basis points (bps) year over year to 42.2%.
Non-GAAP operating expenses increased 8.9% year over year to $59.3 million. As a percentage of revenues, operating expenses were down 320 bps year over year to 28.5%.
The non-GAAP operating margin expanded 360 bps year over year to 13.6%.
FormFactor’s Balance Sheet & Cash Flow
As of Sept. 28, 2024, cash and cash equivalents, and marketable securities were $354.5 million compared with $357.6 million as of June 29, 2024.
Cash generated from operating activities was $26.7 million in the reported quarter, up from $22 million in the previous quarter.
The free cash flow was $20 million in the reported quarter compared with $14.2 million in the previous quarter. This increase was led by higher non-cash expenses of $2.4 million and a $3.1 million reduction in working capital outflows, partially offset by a $ 0.5 million rise in capital expenditure.
FORM’s Q4 Guidance
FormFactor expects fourth-quarter 2024 revenues of $190 million (+/- $5 million). The Zacks Consensus Estimate is pegged at $189.29 million, indicating 12.57% growth from the figure reported in the year-ago quarter.
The company expects a non-GAAP gross margin of 41% (+/- 1.5%).
On a non-GAAP basis, FORM expects earnings of 29 cents (+/- 4 cents) per share. The Zacks Consensus Estimate is pegged at 31 cents per share, indicating 55% growth from the figure reported in the year-ago quarter.
FormFactor’s Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Image: Bigstock
FormFactor Q3 Earnings Beat Estimates, Stock Declines on Weak View
FormFactor (FORM - Free Report) delivered third-quarter 2024 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate by 12.90%. The figure jumped 59.1% year over year.
FORM’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, met in one, and missed in the remaining one, the average surprise being 5.14%.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
However, shares dropped 13.31% to close at $37.98 on Thursday due to an unimpressive fourth-quarter 2024 guidance. Year to date, FormFactor shares have gained 13.6% compared with the Zacks Computer & Technology sector’s appreciation of 41.6%.
FormFactor, Inc. Price, Consensus and EPS Surprise
FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote
FormFactor’s Segmental Details
Revenues of $207.9 million beat the Zacks Consensus Estimate by 3.7% and increased 21.2% year over year. Top-line growth was driven by continued strength in the DRAM probe-card business, which increased 118.9% year over year.
Probe card revenues were $172.2 million, up 34.1% year over year.
Foundry & Logic revenues (accounting for 51.7% of the total revenues) were $107.5 million, up 11.5% year over year.
DRAM revenues (29% of revenues) were $60.2 million, up 118.9% year over year. Strong DDR5 demand drove a third consecutive record-setting quarter for DRAM probe-card revenues. The company expects continued growth in DRAM probe-card revenues in the fourth quarter.
Flash revenues (2.2% of the total revenues) were $4.5 million. The reported figure was unchanged year over year.
Systems revenues (17.2% of the total revenues) were $35.7 million, down 17.4% year over year.
Revenues generated from the United States, Taiwan, South Korea, China, Japan, Singapore, and the rest of the world increased 25.9%, 11.4%, 18.8%, 58.3%, 15.7%, 48.6% and 5%, respectively, year over year.
Revenues generated from Europe and Malaysia declined 16.1% and 11.7%, respectively, year over year.
FORM’s Operating Results
In the third quarter of 2024, the gross margin increased 40 basis points (bps) year over year to 42.2%.
Non-GAAP operating expenses increased 8.9% year over year to $59.3 million. As a percentage of revenues, operating expenses were down 320 bps year over year to 28.5%.
The non-GAAP operating margin expanded 360 bps year over year to 13.6%.
FormFactor’s Balance Sheet & Cash Flow
As of Sept. 28, 2024, cash and cash equivalents, and marketable securities were $354.5 million compared with $357.6 million as of June 29, 2024.
Cash generated from operating activities was $26.7 million in the reported quarter, up from $22 million in the previous quarter.
The free cash flow was $20 million in the reported quarter compared with $14.2 million in the previous quarter. This increase was led by higher non-cash expenses of $2.4 million and a $3.1 million reduction in working capital outflows, partially offset by a $ 0.5 million rise in capital expenditure.
FORM’s Q4 Guidance
FormFactor expects fourth-quarter 2024 revenues of $190 million (+/- $5 million). The Zacks Consensus Estimate is pegged at $189.29 million, indicating 12.57% growth from the figure reported in the year-ago quarter.
The company expects a non-GAAP gross margin of 41% (+/- 1.5%).
On a non-GAAP basis, FORM expects earnings of 29 cents (+/- 4 cents) per share. The Zacks Consensus Estimate is pegged at 31 cents per share, indicating 55% growth from the figure reported in the year-ago quarter.
FormFactor’s Zacks Rank & Other Stocks to Consider
The company currently carries a Zacks Rank #2 (Buy).
Yelp (YELP - Free Report) , Cirrus Logic (CRUS - Free Report) and Olo (OLO - Free Report) are some other top-ranked stocks in the broader sector.
Yelp sports a Zacks Rank #1 (Strong Buy), and Cirrus Logic and Olo carry a Zacks Rank #2 each. You can see the complete list of today’s Zacks #1 Rank stocks here.
YELP shares have declined 27.8% year to date. Yelp is set to report third-quarter 2024 results on Nov. 7.
CRUS shares have gained 32% year to date. Cirrus Logic is set to report second-quarter fiscal 2025 results on Nov 4.
OLO shares have moved down 12.4% year to date. Olo is set to post third-quarter 2024 results on Nov. 7.