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FormFactor Drops for the Week Despite Earnings Beat and Raised Guidance

A steep run-up has turned the chip-testing supplier into a valuation test for investors.

Overview

  • FormFactor shares fell about 11.6% for the week, giving back an early jump after the report as the broader market rose.
  • The company beat forecasts with adjusted profit of $0.56 on roughly $226.1 million in first-quarter sales.
  • It projected roughly $0.61 in adjusted earnings on about $240 million in current-quarter revenue, topping Wall Street targets.
  • Analysts lifted targets, with Evercore ISI moving to $155 with an In Line view and Citi to $165 with a Buy.
  • A one-year gain near 354% and a year-to-date rise above 122% have stoked valuation worries even as the business sells chip-testing gear used from lab work to high-volume production.