Shares of FormFactor (NASDAQ: FORM) , a maker of testing equipment used in the manufacturing of semiconductors, jumped 14% as of 11:40 a.m. EDT Thursday. Investors can credit the double-digit gain to the release of the second-quarter financial report that featured better-than-expected results.
Here's a look at the key numbers from the period:
- Revenue was $135.5 million. While this was down about 6% from the year-ago period, it was ahead of the $134.5 million in revenue that traders were expecting.
- Non-GAAP earnings per share were $0.27 per share. This figure also compared favorably to the $0.24 in EPS that Wall Street had modeled.
Turning to guidance, management projected that revenue in the upcoming quarter will land between $130 million and $138 million. This range falls short of the $141.7 million in revenue that market watchers were predicting.
Net income per share is expected to come in between $0.20 and $0.26. This number is also a bit shy of the $0.29 in EPS that was expected.
Traders appear to be looking past the weak guidance and instead are focusing their attention on the upbeat second-quarter results.
On the conference call with investors, FormFactor highlighted a handful of customer delays that are responsible for the year-over-year decline in sales. In response to the delays, CEO Michael Slessors said, "It is unlikely that 2018 will be a growth year."
Overall, FormFactor shared disappointing guidance and reversed its prior comments that called for sales to increase in 2018 . That has me scratching my head as to why shares are trading higher today.
Traders might be excited by the estimate-topping results, but I have a hard time getting excited by year-over-year declines in sales. For that reason, I'm content to look elsewhere for more promising investment opportunities .
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