FormFactor FORM delivered first-quarter 2024 adjusted earnings of 18 cents per share, missing the Zacks Consensus Estimate by 5.26%. The bottom-line figure increased 12.5% year over year.
Revenues of $168.7 million beat the Zacks Consensus Estimate by 2.24% and increased 0.8% on a year-over-year basis. The top-line growth can primarily be attributed to growth in probe cards.
Segments in Detail
Probe card revenues were $136.7 million, up 7.4% year over year.
Foundry & Logic (accounting for 51.5% of revenues) revenues were $86.8 million, down 14.6% year over year.
FormFactor, Inc. Price, Consensus and EPS Surprise
FormFactor, Inc. price-consensus-eps-surprise-chart | FormFactor, Inc. Quote
DRAM revenues (27.2% of revenues) were $45.9 million, up 131.8% year over year.
Flash revenues (2.4% of revenues) were $4 million, down 32.2% year over year.
Systems revenues (19% of revenues) were $32 million, down 20.2% year over year.
Regionally, revenues generated from the United States and South Korea increased 21.5% and 143.8% year over year, respectively.
Revenues generated from Taiwan, China, Europe, Japan, Malaysia, Singapore and the Rest of World were down 25.8%, 42.4%, 6.4%, 22.7%, 83.2%, 9.4% and 40%, respectively, year over year.
Operating Results
In first-quarter 2024, gross margin increased 30 basis points (bps) year over year to 38.7% in the reported quarter.
Non-GAAP operating expenses increased 2.3% year over year to $52.3 million. As a percentage of revenues, operating expenses were up 50 bps year over year to 31%.
The non-GAAP operating margin contracted 20 bps year over year to 7.7%.
Balance Sheet & Cash Flow
As of Mar 30, 2024, cash and cash equivalents and marketable securities were $349.2 million compared with $328.3 million on Dec 30, 2023.
Cash generated from operating activities was $33 million for the reported quarter, up from $9.25 million in the previous quarter.
Free cash flow was $19.7 million for the reported quarter.
Guidance
FormFactor expects first-quarter 2024 revenues of $195 million (+/- $5 million).
The company expects a non-GAAP gross margin of 45% (+/- 1.5%).
On a non-GAAP basis, FormFactor expects earnings of 31 cents (+/- 4 cents) per share.
Zacks Rank & Stocks to Consider
FormFactor currently carries a Zacks Rank #3 (Hold).
Arista Networks ANET, AMETEK AME and NVIDIA NVDA are some better-ranked stocks that investors can consider in the broader sector. While Arista Networks sports a Zacks Rank #1 (Strong Buy) at present, AMETEK and NVIDIA carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arista Networks shares have gained 8.3% year to date. ANET is set to report its first-quarter 2024 results on May 7.
AMETEK shares have gained 5.5% year to date. AME is set to report its first-quarter 2024 results on May 2.
NVIDIA shares have gained 67.6% year to date. NVDA is set to report its first-quarter fiscal 2025 results on May 22.
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