Overview

* FormFactor ( FORM ) fiscal Q2 revenue rose 14.3% sequentially, beating analyst expectations

* Adjusted net income for fiscal Q2 missed analyst expectations, per LSEG data

* Co closed acquisition of Farmers Branch facility, enhancing operational flexibility

Outlook

* FormFactor ( FORM ) sees Q3 revenue at $200 mln +/- $5 mln

* Company expects Q3 non-GAAP gross margin of 40% +/- 1.5%

* FormFactor ( FORM ) anticipates Q3 non-GAAP EPS of $0.25 +/- $0.04

* Company expects slightly higher Q3 gross margin and operating profit

Result Drivers

* HBM DEMAND - Strong demand for HBM and Foundry & Logic probe cards drove Q2 sequential revenue growth

* VOLUME SHIPPING - Co is shipping in volume to all three major HBM manufacturers, boosting sales

* PRODUCT MIX - Unfavorable product mix and ramp-up costs for a second HBM DRAM customer impacted profitability

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q2 Beat $195.80 $190.20

Revenue mln mln (9

Analysts

)

Q2 Miss $21.20 $23.20

Adjusted mln mln (7

Net Analysts

Income )

Q2 Net $9.10

Income mln

Q2 Gross 37.3%

Margin

Q2 38.5%

Adjusted

Gross

Margin

Q2 Free -$47.10

Cash mln

Flow

Analyst Coverage

* The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the semiconductor equipment & testing peer group is "buy."

* Wall Street's median 12-month price target for FormFactor Inc ( FORM ) is $37.50, about 7.5% above its July 29 closing price of $34.70

* The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release:

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)