FormFactor Q2 adjusted net income misses estimates

FormFactor

30/07/2025 21:10

Overview

FormFactor fiscal Q2 revenue rose 14.3% sequentially, beating analyst expectations

Adjusted net income for fiscal Q2 missed analyst expectations, per LSEG data

Co closed acquisition of Farmers Branch facility, enhancing operational flexibility

Outlook

FormFactor sees Q3 revenue at $200 mln +/- $5 mln

Company expects Q3 non-GAAP gross margin of 40% +/- 1.5%

FormFactor anticipates Q3 non-GAAP EPS of $0.25 +/- $0.04

Company expects slightly higher Q3 gross margin and operating profit

Result Drivers

HBM DEMAND - Strong demand for HBM and Foundry & Logic probe cards drove Q2 sequential revenue growth

VOLUME SHIPPING - Co is shipping in volume to all three major HBM manufacturers, boosting sales

PRODUCT MIX - Unfavorable product mix and ramp-up costs for a second HBM DRAM customer impacted profitability

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$195.80 mln
$190.20 mln (9 Analysts)
Q2 Adjusted Net Income
Miss
$21.20 mln
$23.20 mln (7 Analysts)
Q2 Net Income
$9.10 mln
Q2 Gross Margin
37.3%
Q2 Adjusted Gross Margin
38.5%
Q2 Free Cash Flow
-$47.10 mln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 6 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the semiconductor equipment & testing peer group is "buy."

Wall Street's median 12-month price target for FormFactor Inc is $37.50, about 7.5% above its July 29 closing price of $34.70

The stock recently traded at 25 times the next 12-month earnings vs. a P/E of 20 three months ago

Press Release: ID:nGNX71Vzgh

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)