Quantcast

FormFactor (FORM) Beats Earnings & Revenue Estimates in Q1


Shutterstock photo

FormFactor Inc. FORM reported first-quarter adjusted earnings of 20 cents per share, beating the Zacks Consensus Estimate by a couple of cents. The figure decreased 35.5% sequentially but increased 17.6% year over year.

Revenues increased 11.8% from the year-ago quarter but decreased 6.2% sequentially to $132.2 million. The top line beat the Zacks Consensus Estimate of $130 million and was at the high end of the company's guided range of $127-$135 million.

Quarter Details

Probe card segment revenues were $108.1 million in the first quarter, down 6.9% from fourth-quarter 2018.

Within the probe card segment, Foundry & Logic sales (accounting for 54% of its total revenues) decreased 6.6% on a sequential basis to $71.6 million.

Revenues for DRAM products (22% of revenues) were $28.9 million, down 2.4% sequentially.

Flash revenues were $7.6 million, down on a sequential basis. Almost $4.4 million of the flash revenues were from NAND flash applications.

Systems revenues in the first quarter were $24.1 million, down 2.5% sequentially.

Operating Details

On a non-GAAP basis, gross margin expanded 80 basis points (bps) year over year but was flat sequentially at 44.1%. The year-over-year increase was primarily due to a strong product mixin its engineering systems segment.

Non-GAAP operating expenses were $38.1 million in the first quarter, up $0.9 million from the fourth quarter. The increase was due to higher R&D investments, partially offset by lower SG&A expenses.

Balance Sheet & Cash Flow

At the end of the first quarter, cash and cash equivalents as well as marketable securities were $159.8 million compared with $149 million in the fourth quarter.

Cash flow from operations was $20.6 million in the first quarter. Free cash flow was $14.9 million, down from $15.8 million in the fourth quarter.

Guidance

FormFactor expects second-quarter 2019 revenues between $131 million and $139 million. The Zacks Consensus Estimate for revenues is currently pegged at $134.3 million.

On a non-GAAP basis, the company projects gross margin within 41-44% and earnings in the band of 15-21 cents per share. The Zacks Consensus Estimate for earnings is pegged at 21 cents per share.

FormFactor, Inc. Price, Consensus and EPS Surprise

FormFactor, Inc. Price, Consensus and EPS Surprise | FormFactor, Inc. Quote

Zacks Rank & Stocks to Consider

Currently, Formfactor carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the broader technology sector include Facebook, Inc. FB , Shopify Inc. SHOP and AXT, Inc.   AXTI , each carrying a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .

Long-term earnings growth for Facebook, Shopify and AXT is currently projected at 18.2%, 23.7% and 15%, respectively.

Zacks' Top 10 Stocks for 2019

In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?

Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.

See Latest Stocks Today >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Facebook, Inc. (FB): Free Stock Analysis Report

Shopify Inc. (SHOP): Free Stock Analysis Report

AXT Inc (AXTI): Free Stock Analysis Report

FormFactor, Inc. (FORM): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.





This article appears in: Investing , Business , Earnings , Stocks
Referenced Symbols: FB , SHOP , AXTI , FORM



More from Zacks.com

Subscribe







Zacks.com
Contributor:

Zacks.com

Equity Research












Research Brokers before you trade

Want to trade FX?