The company increased its second quarter revenue forecast to between $65 million and $69 million from between $62 million and $66 million. The new guidance is above the Capital IQ Consensus Estimates, which expects $63.5 million in revenue for the quarter. FormFactor also increased its margin guidance to 34% to 37% from 31% to 34%.
FormFactor said it's seeing strong demand from System-on-Chip and DRAM manufacturers, a trend echoed by Applied Materials (AMAT). The company will further discuss its guidance at its Cowen conference presentation on May 29.
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TheStreet Ratings team rates FORMFACTOR INC as a Hold with a ratings score of C-. TheStreet Ratings Team has this to say about their recommendation:
"We rate FORMFACTOR INC (FORM) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures and increase in net income. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and poor profit margins."