Semiconductor testing company FormFactor (NASDAQ:FORM) will be reporting results tomorrow after the bell. Here’s what to look for.

FormFactor beat analysts’ revenue expectations by 3.8% last quarter, reporting revenues of $207.9 million, up 21.2% year on year. It was an exceptional quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts’ EPS estimates.

Is FormFactor a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting FormFactor’s revenue to grow 13.1% year on year to $190.2 million, improving from the 1.3% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.29 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. FormFactor has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1.4% on average.

Looking at FormFactor’s peers in the semiconductor manufacturing segment, some have already reported their Q4 results, giving us a hint as to what we can expect. KLA Corporation delivered year-on-year revenue growth of 23.7%, beating analysts’ expectations by 4.5%, and Lam Research reported revenues up 16.4%, topping estimates by 1.4%. KLA Corporation’s stock price was unchanged after the results, while Lam Research was up 7.3%.

Read our full analysis of KLA Corporation’s results here and Lam Research’s results here.

Stocks, especially growth stocks where cash flows further in the future are more important to the story, have had a good 2024. An economic soft landing (so far), the start of the Fed's rate cutting campaign, and the election of Donald Trump were positives for the market, and while some of the semiconductor manufacturing stocks have shown solid performance, the group has generally underpeformed, with share prices down 4.5% on average over the last month. FormFactor is down 12% during the same time and is heading into earnings with an average analyst price target of $54.63 (compared to the current share price of $40.57).

Unless you’ve been living under a rock, it should be obvious by now that generative AI is going to have a huge impact on how large corporations do business. While Nvidia and AMD are trading close to all-time highs, we prefer a lesser-known (but still profitable) semiconductor stock benefiting from the rise of AI. Click here to access our free report on our favorite semiconductor growth story.