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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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 recommend 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.