Crispr Therapeutics shares tumble after significant earnings miss
In a challenging market environment, FormFactor (NASDAQ:FORM) Inc. has seen its shares tumble to a 52-week low, with the stock price touching down at $27.16. According to InvestingPro analysis, the stock’s RSI indicates oversold territory, while analyst price targets range from $34 to $52. This significant downturn reflects a broader trend for the semiconductor company, which has experienced a stark year-to-date decline of 34.7%. Investors are closely monitoring the company’s performance, as the current price level marks a critical juncture for FormFactor, raising concerns about the stock’s trajectory in the face of industry headwinds and market volatility. InvestingPro analysis suggests the stock is currently trading below its Fair Value, with 12 additional real-time insights available to subscribers through the comprehensive Pro Research Report.
In other recent news, FormFactor has reported its fourth-quarter earnings, revealing earnings per share of $0.27 and revenue of $189.5 million, both slightly below analysts’ expectations. The company also provided guidance for the first quarter of 2025, projecting earnings per share between $0.15 and $0.23, and revenue between $165 million and $175 million, which are below the consensus estimates. Following these announcements, B.Riley downgraded FormFactor from Buy to Neutral, reducing the price target from $64 to $34, citing weaker demand in the PC and smartphone markets impacting probe card demand.
Additionally, FormFactor announced a strategic partnership with Delft Circuits to enhance quantum computing scalability by integrating advanced cabling solutions into its cryogenic test systems. This collaboration aims to significantly increase the system’s channel capacity, potentially transforming quantum computing interfacing. Despite these developments, Stifel analysts have maintained a Hold rating on FormFactor with a price target of $48, noting the company’s stable position in the High Bandwidth (NASDAQ:BAND) Memory DRAM market.
While FormFactor’s revenue for fiscal year 2024 increased by 15.2% to $764 million, the company faces challenges in the foundry/logic market, traditionally driven by smartphone and PC demand. The company’s acquisition of a minority interest in FICT Limited is not expected to materially impact operations, but investors remain cautious due to the subdued outlook for the first quarter. Stifel’s analysis suggests that while growth signals remain muted, FormFactor’s leadership in advanced probe cards positions it well within the industry.
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