In a challenging market environment, FormFactor (NASDAQ:FORM) Inc. has seen its stock price touch a 52-week low, reaching $30.83. According to InvestingPro data, the company maintains strong financial health with a current ratio of 4.61, indicating robust liquidity. The semiconductor company, which specializes in testing and measurement solutions, has faced headwinds that have pressured its stock over the past year, culminating in this new low point. Investors have been cautious as the broader tech sector grapples with supply chain issues and fluctuating demand. Despite these challenges, FormFactor maintains a strong balance sheet with more cash than debt, and analysts see potential upside with price targets ranging from $34 to $55. Over the past year, FormFactor’s stock has experienced a significant downturn, with a 1-year change showing a decline of 29.74%, reflecting the broader market sentiment and specific industry challenges that have impacted the company’s stock performance. InvestingPro analysis suggests the stock may be undervalued at current levels, with additional insights available in the comprehensive Pro Research Report, which offers deep-dive analysis of this and 1,400+ other US stocks.
In other recent news, FormFactor reported its fourth-quarter earnings with an earnings per share (EPS) of $0.27, falling short of the consensus estimate by $0.02. The company’s revenue for the quarter was $189.5 million, slightly below the expected $190.12 million, although it marked a 12.7% increase from the previous year. Looking ahead, FormFactor provided guidance for the first quarter of 2025 with EPS expected between $0.15 and $0.23, significantly lower than the consensus estimate of $0.33, and projected revenue ranging from $165 million to $175 million, below the anticipated $192.93 million. In response to these developments, B.Riley downgraded FormFactor’s stock from Buy to Neutral, reducing the price target from $64 to $34, citing weaker demand in the PC and smartphone markets and challenges with a major customer. Despite these challenges, Stifel maintained a Hold rating on FormFactor with a price target of $48, expressing cautious optimism about the company’s position in the High Bandwidth (NASDAQ:BAND) Memory (HBM) market. Additionally, FormFactor announced a strategic partnership with Delft Circuits to enhance quantum computing scalability by integrating Cri/oFlex® cabling into its cryogenic test systems. This collaboration aims to increase the system’s total capacity, supporting the growing demands of quantum computing. FormFactor also acquired a minority interest in FICT Limited, a supplier of advanced probe card components, though it is not expected to materially impact operations.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.