We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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 (FORM) Up 3.2% Since Last Earnings Report: Can It Continue?
Read MoreHide Full Article
It has been about a month since the last earnings report for FormFactor (FORM - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
FormFactor 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 5.34% due to these changes.
VGM Scores
At this time, FormFactor has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, FormFactor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Advanced Micro Devices (AMD - Free Report) , has gained 9.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Advanced Micro reported revenues of $5.84 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.69 for the same period compares with $0.58 a year ago.
For the current quarter, Advanced Micro is expected to post earnings of $0.91 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Advanced Micro. Also, the stock has a VGM Score of F.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
FormFactor (FORM) Up 3.2% Since Last Earnings Report: Can It Continue?
It has been about a month since the last earnings report for FormFactor (FORM - Free Report) . Shares have added about 3.2% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is FormFactor due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important catalysts.
FormFactor Q2 Earnings & Revenues Surpass Estimates
FormFactor 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.
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.
How Have Estimates Been Moving Since Then?
It turns out, fresh estimates have trended upward during the past month.
The consensus estimate has shifted 5.34% due to these changes.
VGM Scores
At this time, FormFactor has an average Growth Score of C, however its Momentum Score is doing a bit better with a B. However, the stock was allocated a grade of F on the value side, putting it in the lowest quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, FormFactor has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
FormFactor belongs to the Zacks Electronics - Semiconductors industry. Another stock from the same industry, Advanced Micro Devices (AMD - Free Report) , has gained 9.8% over the past month. More than a month has passed since the company reported results for the quarter ended June 2024.
Advanced Micro reported revenues of $5.84 billion in the last reported quarter, representing a year-over-year change of +8.9%. EPS of $0.69 for the same period compares with $0.58 a year ago.
For the current quarter, Advanced Micro is expected to post earnings of $0.91 per share, indicating a change of +30% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.3% over the last 30 days.
The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Advanced Micro. Also, the stock has a VGM Score of F.