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FormFactor (FORM - Free Report) delivered second-quarter 2024 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate by 12.90%. The company reported earnings of 14 cents per share in the year-ago quarter.
Revenues of $197 million beat the Zacks Consensus Estimate by 1.26% and increased 26.7% on a year-over-year basis. The top-line growth can primarily be attributed to robust demand for probe cards.
Segments in Detail
Probe card revenues were $166.8 million, up 44.7% year over year.
Foundry & Logic (accounting for 52.5% of revenues) revenues were $103.7 million, up 26.6% year over year.
FormFactor, Inc. Price, Consensus and EPS Surprise
The adoption of advanced packaging processes by major foundry and logic customers contributed to higher test intensity and complexity, positively impacting the foundry and logic probe card market.
DRAM revenues (29.4% of revenues) were $58 million, up 90.2% year over year.
Flash revenues (2.6% of revenues) were $5.1 million, up 75.9% year over year.
Systems revenues (15.5% of revenues) were $30.7 million, down 24.4% year over year.
Regionally, revenues generated from the United States, Taiwan, South Korea, China and Singapore increased 12.2%, 51.9, 76%, 6.8% and 60.7%, respectively, year over year.
Revenues generated from Europe, Japan, Malaysia and the rest of the world were down 25.8%, 18.5%, 3.8% and 24.4%, respectively, year over year.
Operating Results
In second-quarter 2024, gross margin increased 470 basis points (bps) year over year to 45.3%.
Non-GAAP operating expenses increased 16.9% year over year to $60.9 million. As a percentage of revenues, operating expenses were down 260 bps year over year to 30.8%.
The non-GAAP operating margin expanded 730 bps year over year to 14.4%.
Balance Sheet & Cash Flow
As of Jun 29, 2024, cash and cash equivalents and marketable securities were $357.6 million compared with $349.2 million on Mar 30, 2024.
Cash generated from operating activities was $22 million in the reported quarter, down from $33 million in the previous quarter.
Free cash flow was $14.2 million in the quarter under review compared with $19.7 million in the previous quarter.
Guidance
FormFactor expects third-quarter 2024 revenues of $200 million (+/- $5 million).
The company expects a non-GAAP gross margin of 43% (+/- 1.5%).
On a non-GAAP basis, FORM expects earnings of 31 cents (+/- 4 cents) per share.
Zacks Rank & Other Stocks to Consider
FormFactor currently carries a Zacks Rank #2 (Buy).
Image: Bigstock
FormFactor (FORM) Q2 Earnings & Revenues Surpass Estimates
FormFactor (FORM - Free Report) delivered second-quarter 2024 adjusted earnings of 35 cents per share, beating the Zacks Consensus Estimate by 12.90%. The company reported earnings of 14 cents per share in the year-ago quarter.
Revenues of $197 million beat the Zacks Consensus Estimate by 1.26% and increased 26.7% on a year-over-year basis. The top-line growth can primarily be attributed to robust demand for probe cards.
Segments in Detail
Probe card revenues were $166.8 million, up 44.7% year over year.
Foundry & Logic (accounting for 52.5% of revenues) revenues were $103.7 million, up 26.6% year over year.
FormFactor, Inc. Price, Consensus and EPS Surprise
FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote
The adoption of advanced packaging processes by major foundry and logic customers contributed to higher test intensity and complexity, positively impacting the foundry and logic probe card market.
DRAM revenues (29.4% of revenues) were $58 million, up 90.2% year over year.
Flash revenues (2.6% of revenues) were $5.1 million, up 75.9% year over year.
Systems revenues (15.5% of revenues) were $30.7 million, down 24.4% year over year.
Regionally, revenues generated from the United States, Taiwan, South Korea, China and Singapore increased 12.2%, 51.9, 76%, 6.8% and 60.7%, respectively, year over year.
Revenues generated from Europe, Japan, Malaysia and the rest of the world were down 25.8%, 18.5%, 3.8% and 24.4%, respectively, year over year.
Operating Results
In second-quarter 2024, gross margin increased 470 basis points (bps) year over year to 45.3%.
Non-GAAP operating expenses increased 16.9% year over year to $60.9 million. As a percentage of revenues, operating expenses were down 260 bps year over year to 30.8%.
The non-GAAP operating margin expanded 730 bps year over year to 14.4%.
Balance Sheet & Cash Flow
As of Jun 29, 2024, cash and cash equivalents and marketable securities were $357.6 million compared with $349.2 million on Mar 30, 2024.
Cash generated from operating activities was $22 million in the reported quarter, down from $33 million in the previous quarter.
Free cash flow was $14.2 million in the quarter under review compared with $19.7 million in the previous quarter.
Guidance
FormFactor expects third-quarter 2024 revenues of $200 million (+/- $5 million).
The company expects a non-GAAP gross margin of 43% (+/- 1.5%).
On a non-GAAP basis, FORM expects earnings of 31 cents (+/- 4 cents) per share.
Zacks Rank & Other Stocks to Consider
FormFactor currently carries a Zacks Rank #2 (Buy).
Shopify (SHOP - Free Report) , Analog Devices (ADI - Free Report) and Digital Ocean (DOCN - Free Report) are some other top-ranked stocks that investors can consider in the broader sector. Digital Ocean sports a Zacks Rank #1 (Strong Buy), while Analog Devices and Shopify carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify’s shares have declined 21.2% year to date. SHOP is set to report its second-quarter 2024 results on Aug 7.
Analog Devices shares have increased 16.5% year to date. ADI is set to report third-quarter fiscal 2024 results on Aug 21.
Digital Ocean’s shares have moved down 9.7% year to date. DOCN is set to report second-quarter 2024 results on Aug 8.