The 10-second takeaway
For the quarter ended March 30 (Q1), FormFactor beat slightly on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP loss per share dropped. GAAP loss per share grew.
Margins increased across the board.
FormFactor notched revenue of $52.6 million. The four analysts polled by S&P Capital IQ expected sales of $51.7 million on the same basis. GAAP reported sales were 51% higher than the prior-year quarter's $34.8 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 -$0.13. The four earnings estimates compiled by S&P Capital IQ predicted -$0.18 per share. Non-GAAP EPS were -$0.13 for Q1 compared to -$0.35 per share for the prior-year quarter. GAAP EPS were -$0.37 for Q1 versus -$0.35 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 17.2%, 530 basis points better than the prior-year quarter. Operating margin was -31.3%, much better than the prior-year quarter. Net margin was -37.6%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $60.1 million. On the bottom line, the average EPS estimate is -$0.07.
Next year's average estimate for revenue is $248.7 million. The average EPS estimate is -$0.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,326 members out of 1,366 rating the stock outperform, and 40 members rating it underperform. Among 362 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 352 give FormFactor a green thumbs-up, and 10 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 $7.35.
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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 recommends FormFactor. The Motley Fool owns shares of 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.