The 10-second takeaway
For the quarter ended Sep. 29 (Q3), FormFactor beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share expanded.
Margins dropped across the board.
FormFactor logged revenue of $41.3 million. The five analysts polled by S&P Capital IQ predicted net sales of $40.0 million on the same basis. GAAP reported sales were 21% lower than the prior-year quarter's $52.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.15. The five earnings estimates compiled by S&P Capital IQ predicted -$0.25 per share. GAAP EPS were -$0.29 for Q3 compared to -$0.20 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 19.8%, 320 basis points worse than the prior-year quarter. Operating margin was -29.1%, 1,060 basis points worse than the prior-year quarter. Net margin was -35.1%, 1,610 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $47.2 million. On the bottom line, the average EPS estimate is -$0.20.
Next year's average estimate for revenue is $176.8 million. The average EPS estimate is -$0.80.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,383 members out of 1,418 rating the stock outperform, and 35 members rating it underperform. Among 390 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 382 give FormFactor a green thumbs-up, and eight give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FormFactor is outperform, with an average price target of $8.00.
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