FORM Earnings Prediction
The chart below shows how FORM performed 10 days before and after its earnings report, based on data from the past quarters. Typically, FORM sees a +0.62% change in stock price 10 days leading up to the earnings, and a -1.54% change 10 days following the report. On the earnings day itself, the stock moves by +0.25%. This data can give you a slight idea of what to expect for the next quarter's release.
FORM Key Earning Data
FORM Earnings Analysis
Positive
Revenue Growth Anticipation: FormFactor anticipates double-digit sequential revenue growth in Q2 2025, driven by increased demand from hyperscalers investing in generative AI.
DRAM Probe Card Revenue Surge: The company expects DRAM probe card revenue to return to record levels in Q2, with strong demand in HBM applications and steady demand in DDR5 and LPDDR5 applications.
Acquisition Enhances Packaging Technology: FormFactor's acquisition of FICT Limited enhances its access to multilayer organic substrates, a key enabling technology for advanced packaging.
Increased Demand in Probe Cards: The company is seeing increased demand in the Foundry and Logic probe card market, driven by seasonal ramps in mobile application processors and client microprocessor designs.
Systems Segment Growth: FormFactor's systems segment is expected to see moderate sequential growth, driven by innovation in quantum computing and high-performance computing.
Silicon Photonics Leadership Expansion: The company has a strong leadership position in the silicon photonics lab space, with over 100 systems installed worldwide, and is extending this leadership into production.
Strong Operational Efficiency: FormFactor's non-GAAP gross margin for Q1 was near the high end of the outlook range, indicating strong operational efficiency despite revenue fluctuations.
Free Cash Flow Performance: The company generated free cash flow of $6.3 million in Q1, demonstrating solid cash management amid challenging market conditions.
Share Repurchase Program Approval: FormFactor's share repurchase program has been successfully utilized, with a new $75 million program approved by the Board of Directors, reflecting confidence in the company's financial health.
Negative
Revenue and Profit Decline: FormFactor reported a sequential decline in first quarter revenue and profitability, primarily due to reduced demand for DRAM probe cards and systems.
Revenue Decline Forecast: The company anticipates a significant revenue reduction in the second quarter due to tariffs, estimating a mid single-digit million dollar impact on revenues and a one percentage point reduction in gross margins.
Quarterly Revenue Decline: First quarter revenues decreased by 9.6% from the previous quarter, with DRAM revenues dropping 22.8% from the record levels of the fourth quarter.
Probe Card Gross Margin Decline: The gross margin for the probe card segment fell to 37.8%, a decrease of 2.2 percentage points compared to the previous quarter, driven by lower revenues.
Decline in Free Cash Flow: Free cash flow in the first quarter was significantly lower at $6.3 million compared to $28.8 million in the fourth quarter, attributed to lower profitability and increased working capital outflows.
Cash and Investments Decline: Total cash and investments decreased by $64 million from the previous quarter, primarily due to the investment in FICT and lower free cash flows.
Tariff Impact on Investments: The company is facing uncertainty regarding the impact of tariffs on its supply chain and is taking a cautious approach to capital investments in light of the evolving geopolitical environment.
FORM FAQs
How does FORM typically perform around its earnings report dates?
FORM's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +0.62% change leading up to the report and a -1.54% change in the 10 days following the release.
Is FormFactor Inc (FORM) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
FORM Earning Call Sentiment
Earnings call transcript: FormFactor’s Q1 2025 results miss EPS forecasts
FORM.O
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