In a challenging market environment, FormFactor Inc. (NASDAQ:FORM) stock has touched a 52-week low, dipping to $32.67. According to InvestingPro data, the stock’s RSI indicates oversold territory, while the company maintains strong fundamentals with a healthy 4.6x current ratio and more cash than debt on its balance sheet. The semiconductor company, known for its advanced wafer test solutions, has faced headwinds alongside the broader tech sector, reflecting a downturn in investor sentiment. Over the past year, FormFactor’s stock has seen a significant decline, with a 1-year change showing a decrease of 20.65%. Despite the challenging environment, the company maintains profitability with a 40.3% gross margin and $763.6 million in revenue. This downturn mirrors the volatility and cooling demand in the semiconductor industry, as well as the impact of macroeconomic factors affecting tech stocks globally. Investors are closely monitoring the company’s performance for signs of a rebound as the market navigates through these turbulent times. For deeper insights and 12 additional ProTips about FORM, check out the comprehensive research available on InvestingPro.
In other recent news, FormFactor reported fourth-quarter earnings per share of $0.27, which fell short of the consensus estimate by $0.02, with revenue slightly missing expectations at $189.5 million. The company’s guidance for the first quarter of 2025 also disappointed, with expected earnings per share ranging from $0.15 to $0.23, below the consensus estimate of $0.33, and anticipated revenue between $165 million and $175 million, lower than the expected $192.93 million. FormFactor’s fiscal year 2024 revenue increased by 15.2% to $764 million, driven by growth in High Bandwidth (NASDAQ:BAND) Memory (HBM) revenue. Despite this, challenges in the PC and smartphone markets have impacted demand for probe cards, leading B.Riley to downgrade the stock from Buy to Neutral and reduce the price target to $34.00. Stifel analysts maintained a Hold rating on FormFactor with a $48.00 price target, expressing cautious optimism about the company’s future performance. They noted a decline in foundry-logic revenue but highlighted significant growth in the DRAM segment. Additionally, FormFactor’s stock saw a 5% increase following a series of upgrades by industry analysts, who believe the risk-reward is now more favorable. These developments come amid a broader cautious outlook for the semiconductor equipment industry, with expectations of a decline in capital expenditures in 2025.
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