Shares of semiconductor testing company FormFactor plummeted over 25% in pre-market trading on Wednesday, following its disappointing fourth-quarter results and weak guidance for the first quarter of 2025. The company cited sluggish demand in key high-volume markets like client PCs and mobile handsets as the primary reason for its lackluster performance.
For the fourth quarter, FormFactor reported adjusted earnings per share of $0.27, missing analysts' expectations of $0.29. Revenue of $189.48 million also fell short of the consensus estimate of $191.12 million, representing a 12.7% year-over-year increase. The company's first-quarter guidance was even more concerning, with projected revenue of $170 million plus or minus $5 million, significantly below analysts' expectations of $192.93 million.
FormFactor's CEO, Mike Slessor, acknowledged the challenging environment, stating, "We continue to see slow demand in important high-volume markets like client PCs and mobile handsets." Despite the headwinds, Slessor expressed optimism about an overall demand increase for the company's products throughout 2025. However, the weak guidance and ongoing demand challenges appear to have overshadowed any positive sentiment, leading to the sharp sell-off in the stock.
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