Shares of technology company, FormFactor Inc. FORM, hit a new 52-week high of $10.00 on Feb 27, eventually closing at $9.82. The company returned 36.58% in a year and delivered a 14.19% year-to-date. Average volume of shares traded over the last three months was roughly 329K.
What's Driving FormFactor?
FormFactor is one of the world's foremost providers of vital wafer test technologies and proficiency, with a broad portfolio of high-performance probe cards for DRAM, Flash and SoC devices. With the NAND Flash market expanding at a rapid pace, the demand for probe card is also growing, which will continue to benefit FormFactor.
The company’s strong momentum in the SoC business with escalating customer attention toward its product solutions, mainly driven by mobile, industrial and automotive applications should remain the solid growth catalysts, going forward.
On the cost and efficiency front, the company is focusing on arranging its resources and investments more broadly across the SoC, DRAM and Flash probe card markets. This is helping it contain its costs better while targeting growth opportunities across markets. Also, FormFactor’s solid execution is helping it gain shares and expand the addressable market footprint.
Moreover, the company gained momentum from strong fundamentals and better-than-expected fourth-quarter results released on Feb 4. Since then, the stock has moved up 24%.
FormFactor’s top line increased 46.8% from the year-ago period to $71.3 million. Also, revenues marginally beat the Zacks Consensus Estimate of $71.0 million. The increase was driven by improved SoC and Flash revenues. Additionally, non-GAAP earnings of 6 cents surpassed the Zacks Consensus Estimate.
FormFactor’s strong revenue growth, solid financial conditions, increasing market share due to solid execution and strong long-term growth potential position it favorably.
Moreover, the Zacks Consensus Estimate for fiscal 2015 earnings represents a 175% surge from the prior-year figure. Additionally, the company recorded a whopping positive earnings surprise of 200.0% in the reported quarter.
The stock has also delivered an average earnings surprise of nearly 55.58% over the trailing four quarters. This Zacks Rank #1 (Strong Buy) stock has a market cap of approximately $554.6 million and a long-term expected earnings growth rate of 12%.
Stocks to Consider
Some well-placed stocks in the technology space include Nitto Denko Corp. NDEKY DSP Group Inc. DSPG and Emulex Corp. ELX, all carrying a Zacks Rank #1.
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