Aehr Test Systems stock hits 52-week low at $9.82

In a challenging market environment, Aehr Test Systems’ stock has touched a 52-week low, dipping to $9.82. The semiconductor testing company has faced significant headwinds over the past year, reflected in a substantial 1-year change with a decline of 37.92%. Despite current challenges, InvestingPro analysis shows the company maintains strong fundamentals with a healthy 7.5x current ratio and minimal debt-to-equity of 0.05. This downturn has brought the stock to its lowest price level in the last year, marking a period of concern for investors who have witnessed the stock struggle to regain its previous momentum. The current price point presents a critical juncture for the company as it navigates through the pressures of the semiconductor industry and broader economic factors influencing investor sentiment. While near-term volatility remains high with a beta of 1.82, the company has demonstrated impressive long-term performance with strong returns over both five and ten-year periods. For deeper insights into Aehr’s valuation and growth prospects, including 15 additional ProTips, check out the comprehensive analysis available on InvestingPro.

In other recent news, Aehr Test Systems reported its second quarter fiscal 2025 earnings, which did not meet analyst expectations. The company posted an adjusted earnings per share of $0.02, falling short of the anticipated $0.03. Revenue for the quarter was reported at $13.5 million, below the $15 million estimate and a significant decrease from the $21.4 million reported in the same period last year. Despite these results, Aehr reaffirmed its full-year revenue guidance of at least $70 million, close to the analyst consensus of $70.84 million.

The company has made strides in expanding its market presence, securing its first AI processor customer for wafer level burn-in and receiving volume production orders from an AI processor customer for package part burn-in. Aehr also acquired its first gallium nitride customer for high-volume production wafer level burn-in. As of late November 2024, the company’s backlog stood at $12.4 million, with an effective backlog of $26.6 million including recent bookings.

The company ended the quarter with $35.2 million in cash and equivalents, down from $40.8 million in the previous quarter. William Blair analyst Jed Dorsheimer maintained a Market Perform rating on Aehr, noting potential risks related to revenue recognition and new customer ramp-ups outside of silicon carbide.

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