Q3 Rundown: FormFactor (NASDAQ:FORM) Vs Other Semiconductor Manufacturing Stocks
The end of an earnings season can be a great time to assess how companies are handling the current business environment and discover new stocks. Let’s take a look at how FormFactor (NASDAQ:FORM) and the rest of the semiconductor manufacturing stocks fared in Q3.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a mixed Q3; on average, revenues beat analyst consensus estimates by 0.6% while next quarter's revenue guidance was 3.9% below consensus. Valuation multiples for growth stocks have reverted to their historical means after reaching highs in early 2021, but semiconductor manufacturing stocks held their ground better than others, with the share prices up 20.7% on average since the previous earnings results.
FormFactor (NASDAQ:FORM)
With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.
FormFactor reported revenues of $171.6 million, down 5.1% year on year, topping analyst expectations by 2.8%. It was a decent quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.
“We continue to operate efficiently in what we see as a relatively stable near-term demand environment across our diversified product and technology portfolio,” said Mike Slessor, CEO of FormFactor,
The stock is up 15.6% since the results and currently trades at $38.64.
Is now the time to buy FormFactor? Access our full analysis of the earnings results here, it's free.
Best Q3: Nova (NASDAQ:NVMI)
Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.
Nova reported revenues of $128.8 million, down 10.5% year on year, outperforming analyst expectations by 4.6%. It was a strong quarter for the company, with a significant improvement in its inventory levels and an impressive beat of analysts' EPS estimates.
Nova achieved the biggest analyst estimates beat among its peers. The stock is up 29.1% since the results and currently trades at $131.23.
Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.
Slowest Q3: IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $301.4 million, down 13.6% year on year, falling short of analyst expectations by 4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
The stock is up 23.6% since the results and currently trades at $103.21.
Read our full analysis of IPG Photonics's results here.
Kulicke and Soffa (NASDAQ:KLIC)
Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices
Kulicke and Soffa reported revenues of $202.3 million, down 29.3% year on year, surpassing analyst expectations by 1.1%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.
The stock is up 11.3% since the results and currently trades at $52.
Read our full, actionable report on Kulicke and Soffa here, it's free.
Semtech (NASDAQ:SMTC)
Operating for more than 60 years, Semtech (NASDAQ:SMTC) is a provider of analog and mixed-signal semiconductors used for Internet of Things systems and cloud connectivity.
Semtech reported revenues of $200.9 million, up 13.1% year on year, in line with analyst expectations. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin. On the other hand, Semtech blew past analysts' adjusted EBITDA and EPS expectations.
Semtech achieved the fastest revenue growth among its peers. The stock is up 27.5% since the results and currently trades at $21.29.
Read our full, actionable report on Semtech here, it's free.
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The author has no position in any of the stocks mentioned
