FormFactor's (FORM) Shares Rise 10.7% On Strong Q4 Outlook
Zacks Investment Research | Dec 12, 2019 06:25AM ET
FormFactor Inc. (NASDAQ:FORM) has revised expectations for revenues, gross margins and earnings per share for the fourth quarter of 2019.
The company provided strong growth outlook on strong demand environment.
Investors seem overwhelmed with the announcement as FormFactor’s share price increased more than 10% in yesterday’s trading session, reaching a high of $23.77 and eventually closing at $23.75.
Also, shares of FormFactor have increased 68.5% compared with the industry ’s 39.1% rally year to date.
Q4 Guidance Update
FormFactor now expects sales within $170-$178 million, up from the $145-$155 million range expected earlier. The Zacks Consensus Estimate for revenues is currently pegged at $150 million.
Management stated that strength in Foundry and Logic remains a major positive for the quarter. Foundry and Logic customers are ramping both new designs and nodes, which should expand the company’s top-line growth. Also, it has been witnessing robust demand for other businesses.
On a non-GAAP basis, the company revised its gross margin guidance to 43-46% from 42-46% and earnings per share to the range of 27-35 cents from 22-30 cents. The Zacks Consensus Estimate for earnings per share is pegged at 26 cents.
FormFactor, Inc. Price and Consensus
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