Fool Cheatsheet: FormFactor Earnings

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FormFactor (NAS: FORM) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), FormFactor beat expectations on revenue and missed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share grew.

Margins dropped across the board.

Revenue details
FormFactor recorded revenue of $30.2 million. The two analysts polled by S&P Capital IQ looked for sales of $29.2 million. Sales were 31% lower than the prior-year quarter's $43.9 million.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.

EPS details
Non-GAAP EPS came in at -$0.45. The four earnings estimates compiled by S&P Capital IQ forecast -$0.42 per share on the same basis. GAAP EPS were -$0.54 for Q4 against -$0.40 per share for the prior-year quarter.

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Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.

Margin details
For the quarter, gross margin was -16.5%, 2,410 basis points worse than the prior-year quarter. Operating margin was -91.4%, 4,210 basis points worse than the prior-year quarter. Net margin was -89.3%, 4,280 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $32.3 million. On the bottom line, the average EPS estimate is -$0.52.

Next year's average estimate for revenue is $173.2 million.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,436 members out of 1,471 rating the stock outperform, and 35 members rating it underperform. Among 494 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 489 give FormFactor a green thumbs-up, and five give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on FormFactor is hold, with an average price target of $7.69.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of FormFactor. Motley Fool newsletter services have recommended buying shares of FormFactor. Motley Fool newsletter services have also recommended creating a bull call spread position in FormFactor. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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