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What: Shares of multiple Foolish newsletter recommendation FormFactor
So what: The maker of equipment for semiconductor manufacturing processes barely edged out analyst expectations with healthy revenues and a smaller net loss than predicted. The real kicker came from the surprise announcement of a $50 million share buyback program.
Now what: Our own Anand Chokkavelu noted yesterday that FormFactor would do well to consider a buyback allotment, only hours before the announcement. It's a turnaround story in the making, and a tremendously strong balance sheet should help the company through a few more quarters of net losses. It also helps that more than half of the bottom-line damage stems from non-cash accounting adjustments during the quarter.
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Fool contributor Anders Bylund holds no position in any of the companies discussed here. FormFactor is a Motley Fool Hidden Gems selection. Motley Fool Options has recommended a bull call spread position on FormFactor. The Fool owns shares of FormFactor. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is investors writing for investors.