FormFactor
FORM
is scheduled to report fourth-quarter 2021 results on Feb 2.
For the fourth quarter, the company expects earnings in the band of 37-45 cents per share. The Zacks Consensus Estimate for earnings is pegged at 41 cents per share. This indicates a decline of 6.8% from the year-ago reported figure.
Further, FORM anticipates revenues between $192 million and $204 million. The consensus mark for the same is pegged at $198 million, indicating an increment of 0.5% from the year-ago reported figure.
FormFactor beat on earnings in three of the trailing four quarters and missed the same once, with the average surprise being 7.6%.
FormFactor, Inc. Price and EPS Surprise
FormFactor, Inc. price-eps-surprise
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FormFactor, Inc. Quote
Factors to Consider
The increasing demand for FormFactor’s diversified set of semiconductor test and measurement products is likely to have continued benefiting its fourth-quarter performance.
The company has been witnessing increasing demand for leading-edge foundry and logic probe cards. This might have aided its performance in the to-be-reported quarter.
Growing investments in automation and vertical integration are expected to have remained a tailwind in the quarter under review.
Solid momentum in wafer fabrication equipment is likely to have continued supporting its performance in the quarter under discussion.
In addition, advanced packaging is anticipated to have remained a key factor in driving the company’s businesses in the fourth quarter. This is because customers have been persistently adopting chiplet style integration strategies for generating new test and measurement requirements.
Yet, the global coronavirus-driven economic crisis has been raising volatility in the semiconductor market. This might get reflected in the upcoming quarterly results.
Also, supply chain constraints and labor shortage challenges are expected to have remained concerns in the to-be-reported quarter.
Further, higher operating expenses due to increased investments in research & development and greater travel expenses are likely to have hurt the company’s profitability.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for FormFactor this time around. The combination of a positive
Earnings ESP
and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our
Earnings ESP Filter
.
It has an Earnings ESP of 0.00% and a Zacks Rank #3, at present.
Stocks to Consider
Here are some stocks that you may consider as our model shows that these have the right combination of elements to beat on earnings this season.
Endava
DAVA
has an Earnings ESP of +0.85% and a Zacks Rank of 2 at present. You can see
the complete list of today’s Zacks #1 Rank stocks here
.
Endava is scheduled to release second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.26% from the prior-year reported figure.
Monolithic Power Systems
MPWR
has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.
Monolithic Power Systems is set to report fourth-quarter 2021 results on Feb 10. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.8% from the prior-year reported figure.
Analog Devices
ADI
has an Earnings ESP of +0.25% and a Zacks Rank #2 at present.
Analog Devices is scheduled to release first-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for ADI’s earnings is pegged at $1.79 per share, which suggests an increase of 24.31% from the prior-year reported figure.
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