The 10-second takeaway
For the quarter ended June 29 (Q2), FormFactor beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue grew. Non-GAAP loss per share was unchanged. GAAP loss per share grew.
Margins contracted across the board.
FormFactor notched revenue of $62.7 million. The four analysts polled by S&P Capital IQ expected to see sales of $60.8 million on the same basis. GAAP reported sales were 14% higher than the prior-year quarter's $54.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
EPS came in at -$0.01. The four earnings estimates compiled by S&P Capital IQ predicted -$0.04 per share. Non-GAAP EPS of -$0.01 were the same as the prior-year quarter. GAAP EPS were -$0.16 for Q2 versus -$0.08 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures are normalized by S&P Capital IQ and may vary to maintain comparability with normalized estimates.
For the quarter, gross margin was 26.2%, 330 basis points worse than the prior-year quarter. Operating margin was -12.7%, 120 basis points worse than the prior-year quarter. Net margin was -13.4%, 570 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $69.6 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $249.3 million. The average EPS estimate is -$0.08.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,325 members out of 1,362 rating the stock outperform, and 37 members rating it underperform. Among 395 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 386 give FormFactor a green thumbs-up, and nine 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 $7.55.
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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. 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.
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