FormFactor shares tumble as earnings miss, guidance disappoints

Published 30/07/2025, 21:46
FormFactor shares tumble as earnings miss, guidance disappoints

Investing.com -- FormFactor , Inc. (NASDAQ:FORM) reported second-quarter earnings that fell short of analyst expectations despite revenue exceeding forecasts, sending shares plunging 18.2% as the company’s guidance also came in below Wall Street estimates.

The semiconductor testing equipment maker posted adjusted earnings of $0.27 per share for the quarter ended June 28, missing the analyst consensus of $0.30. Revenue came in at $195.8 million, surpassing the $190.17 million analysts had expected, but down 0.8% YoY from $197.5 million in the second quarter of 2024. The company’s shares tumbled following the results, primarily due to the earnings miss and disappointing guidance.

For the third quarter, FormFactor expects revenue of $200 million, plus or minus $5 million, with adjusted earnings projected at $0.25 per share, significantly below the consensus estimate of $0.33 per share.

"FormFactor reported sequentially stronger second-quarter revenue that exceeded the high end of our outlook range, due to higher-than-anticipated growth in our probe-card business," said Mike Slessor, CEO of FormFactor. "Despite this revenue strength, non-GAAP gross margin and overall profitability fell short of our outlook, mainly caused by an unfavorable shift in product mix and unforecasted ramp-up costs for a second HBM DRAM customer."

The company’s adjusted gross margin declined to 38.5% in the second quarter, down from 39.2% in the first quarter and 45.3% in the same period last year. Free cash flow turned negative at -$47.1 million, compared to positive $6.3 million in the first quarter.

FormFactor noted that it is now shipping in volume to all three major HBM manufacturers and has closed the acquisition of its Farmers Branch manufacturing facility, which the company says will provide significant operational flexibility in a lower operating cost region.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.