The 10-second takeaway
For the quarter ended March 31 (Q1), FormFactor beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP loss per share dropped.
Gross margins grew, operating margins dropped, and net margins grew.
FormFactor reported revenue of $34.8 million. The four analysts polled by S&P Capital IQ hoped for revenue of $32.2 million on the same basis. GAAP reported sales were 14% lower than the prior-year quarter's $40.4 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 -$0.29. The four earnings estimates compiled by S&P Capital IQ averaged -$0.45 per share. GAAP EPS were -$0.35 for Q1 compared to -$0.42 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 11.9%, 180 basis points better than the prior-year quarter. Operating margin was -50.1%, 90 basis points worse than the prior-year quarter. Net margin was -50.1%, 290 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $38.2 million. On the bottom line, the average EPS estimate is -$0.34.
Next year's average estimate for revenue is $169.3 million. The average EPS estimate is -$1.22.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,421 members rating the stock outperform and 37 members rating it underperform. Among 419 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 411 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 $6.94.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of FormFactor. Motley Fool newsletter services have recommended buying shares of and creating a bull call spread position in FormFactor. Try any of our Foolish newsletter services free for 30 days. 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 has a disclosure policy.