Shares of Aehr Test Systems (AEHR 1.50%) fell 16.8% on Wednesday after the semiconductor test equipment company's weak forward outlook overshadowed an otherwise solid quarterly report.
For Aehr's fiscal second quarter 2024 ended Nov. 30, 2023, revenue grew 45% year over year to $21.4 million, translating to adjusted non-GAAP (generally accepted accounting principles) net income of $6.7 million, or $0.23 per share. Analysts, on average, were only expecting earnings of $0.19 per share on revenue of $20.9 million.
Why Aehr's strong quarter just wasn't enough
Aehr CEO Gayn Erickson credited the company's growth to higher demand for the company's wafer-level test and burn-in products. Looking ahead, however, he also noted that the slowing growth in the electric vehicle market appears to be negatively impacting the timing of several current and new customer orders and planned capacity increases for silicon carbide devices.
"For clarity, we do not see the silicon carbide market decreasing; only a temporary slowing of the growth rate," Erickson added.
What's next for Aehr Test Systems' shareholders?
As a result, Aehr Test Systems now expects full fiscal-year 2024 revenue in the range of $75 million to $85 million, good for growth of 15% to 30% year over year -- but also down from its previous outlook for at least $100 million.
Over the longer term, Aehr remains confident in the viability of its products and target markets. But in a forward-looking stock market that hates being told to effectively hurry up and wait, it's no surprise to see shares of Aehr Test Systems pulling back hard in response today.
