Overview

* FormFactor ( FORM ) reports Q3 revenue of $202.7 mln, beating analysts' expectations

* Adjusted net income for Q3 beats estimates, reaching $25.7 mln

* Company's gross margin improved to 39.8% from 37.3% in Q2

Outlook

* FormFactor ( FORM ) expects Q4 revenue of $210 mln +/- $5 mln

* Company anticipates Q4 gross margin of 40% +/- 1.5%

* FormFactor ( FORM ) projects Q4 non-GAAP EPS of $0.35 +/- $0.04

Result Drivers

* DRAM PROBE CARDS - Double-digit sequential growth in DRAM probe cards, driven by HBM technology

* SYSTEMS SEGMENT - Anticipated revenue increase in Systems Segment, with growth expected to continue in Q4

* GROSS MARGIN IMPROVEMENT - Rapid gross margin improvement actions led to a 250 basis point increase from Q2

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Beat $202.70 $200 mln

Revenue mln (9

Analysts

)

Q3 Beat $25.68 $19.30

Adjusted mln mln (7

Net Analysts

Income )

Q3 Net $15.66

Income mln

Q3 Gross 39.80%

Margin

Q3 41%

Adjusted

Gross

Margin

Q3 Free $19.66

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 $35.00, about 21.2% below its October 28 closing price of $42.42

* The stock recently traded at 34 times the next 12-month earnings vs. a P/E of 25 three months ago

Press Release:

For questions concerning the data in this report, contact [email protected]. For any other questions or feedback, contact .

(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.)