FormFactor Inc. (FORM - Free Report) reported fourth-quarter adjusted earnings of 31 cents per share, beating the Zacks Consensus Estimate by 5 cents. Moreover, the reported earnings increased 19% sequentially and 29% year over year.
Revenues increased 6.8% from the year-ago quarter and 4.4% sequentially to $140.9 million. Also, the top line beat the Zacks Consensus Estimate of $136 million. In addition, the figure was slightly above the company’s guided range of $132-$140 million.
Quarter Details
Probe card segment revenues were $116.2 million in the fourth quarter, up 4.1% from the last reported quarter.
Within the probe card segment, Foundry & Logic sales (accounting for 54% of its total revenues) increased 25% on a sequential basis to $76.7 million.
Revenues for DRAM products (21% of revenues) were $29.6 million, down sequentially.
Flash revenues were $9.9 million, down on a sequential basis. Almost $5.8million of the flash revenues were from NAND flash applications.
Systems revenues in the fourth quarter were $24.7 million, up 5.8% sequentially.
Operating Details
On a non-GAAP basis, gross margin expanded 230 basis points (bps) year over year and 40 bps sequentially to 44.1%. The increase was primarily due to a favorable product mix.
Non-GAAP operating expenses were $37.2 million in the fourth quarter, down $0.3 million from the last reported quarter. The decrease was due to employee-related costs, including lower performance-based compensation, coupled with benefits and disciplined spending.
Balance Sheet & Cash Flow
At the end of the fourth quarter, cash and cash equivalents as well as marketable securities were $149.0 million compared with $142.1 million in the last reported quarter.
Free cash flow was $15.8 million, up from $13 million in the last reported quarter.
Guidance
FormFactor expects first-quarter 2019 revenues between $127 million and $135 million. The Zacks Consensus Estimate for revenues is currently pegged at $130.0 million.
On a non-GAAP basis, the company projects gross margin within 41-44% and earnings in the band of 15-21 cents per share. The Zacks Consensus Estimate for earnings is pegged at 19 cents.
Zacks Rank & Stocks to Consider
Currently, Formfactor carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector are Twitter , AMETEK, Inc. (AME - Free Report) and Inphi Corporation . While Twitter sports a Zacks #1 Rank (Strong Buy), AMETEK and Inphi both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Twitter, AMETEK and Inphi is projected to be 11.5%, 9.58% and 18.5%, respectively.
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FormFactor Inc. (FORM - Free Report) reported fourth-quarter adjusted earnings of 31 cents per share, beating the Zacks Consensus Estimate by 5 cents. Moreover, the reported earnings increased 19% sequentially and 29% year over year.
Revenues increased 6.8% from the year-ago quarter and 4.4% sequentially to $140.9 million. Also, the top line beat the Zacks Consensus Estimate of $136 million. In addition, the figure was slightly above the company’s guided range of $132-$140 million.
Quarter Details
Probe card segment revenues were $116.2 million in the fourth quarter, up 4.1% from the last reported quarter.
Within the probe card segment, Foundry & Logic sales (accounting for 54% of its total revenues) increased 25% on a sequential basis to $76.7 million.
Revenues for DRAM products (21% of revenues) were $29.6 million, down sequentially.
Flash revenues were $9.9 million, down on a sequential basis. Almost $5.8million of the flash revenues were from NAND flash applications.
Systems revenues in the fourth quarter were $24.7 million, up 5.8% sequentially.
Operating Details
On a non-GAAP basis, gross margin expanded 230 basis points (bps) year over year and 40 bps sequentially to 44.1%. The increase was primarily due to a favorable product mix.
Non-GAAP operating expenses were $37.2 million in the fourth quarter, down $0.3 million from the last reported quarter. The decrease was due to employee-related costs, including lower performance-based compensation, coupled with benefits and disciplined spending.
Balance Sheet & Cash Flow
At the end of the fourth quarter, cash and cash equivalents as well as marketable securities were $149.0 million compared with $142.1 million in the last reported quarter.
Free cash flow was $15.8 million, up from $13 million in the last reported quarter.
Guidance
FormFactor expects first-quarter 2019 revenues between $127 million and $135 million. The Zacks Consensus Estimate for revenues is currently pegged at $130.0 million.
On a non-GAAP basis, the company projects gross margin within 41-44% and earnings in the band of 15-21 cents per share. The Zacks Consensus Estimate for earnings is pegged at 19 cents.
Zacks Rank & Stocks to Consider
Currently, Formfactor carries a Zacks Rank #4 (Sell). Some better-ranked stocks in the broader technology sector are Twitter , AMETEK, Inc. (AME - Free Report) and Inphi Corporation . While Twitter sports a Zacks #1 Rank (Strong Buy), AMETEK and Inphi both carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for Twitter, AMETEK and Inphi is projected to be 11.5%, 9.58% and 18.5%, respectively.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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