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FormFactor Q3 revenue beats analyst estimates on Foundry & Logic sequential segment strength 

By Reuters News


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


Reuters Recommended Reads

  • Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales

  • Oct 27 - Teradyne Q4 profit forecast signals sequential slowdown as quarterly margins narrow

  • Oct 28 - Chip tool maker ASM expects to exceed 2027 sales goal on strong AI demand, CEO says


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

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