FormFactor Q3 revenue beats analyst estimates on Foundry & Logic sequential segment strength
Overview
Semiconductor test equipment maker's fiscal Q3 revenue rose 38% yr/yr and 8.6% qr/qr, beating analyst expectations
Adjusted net income for fiscal Q3 beat analyst expectations
Company cites broad-based demand and higher Systems segment revenue as drivers of growth
Outlook
FormFactor sees Q4 revenue at $285 mln, plus or minus $10 mln
Company expects Q4 non-GAAP gross margin of 54.0%, plus or minus 1.5%
Company says Q4 outlook reflects continued broad-based strength in demand
Result Drivers
FOUNDRY & LOGIC DEMAND - Co said Foundry & Logic segment revenue grew 10% sequentially, with broad-based strength across multiple end applications
SYSTEMS SEGMENT - Co reported more than 20% sequential growth in Systems segment revenue on higher demand for co-packaged optics
MANUFACTURING OUTPUT - Co said it met rising customer demand by increasing output within its existing manufacturing footprint
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $280.50 mln | $270.52 mln (9 Analysts) |
Q3 Adjusted Net Income | Beat | $82.30 mln | $68.60 mln (7 Analysts) |
Q3 Net Income | $73.80 mln | ||
Q3 Gross Margin | 54.70% | ||
Q3 Adjusted Gross Margin | 56.50% | ||
Q3 Free Cash Flow | $64.80 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for FormFactor Inc is $150.00, about 40.4% above its October 27 closing price of $106.85
The stock recently traded at 29 times the next 12-month earnings vs. a P/E of 58 three months ago
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)