FormFactor Inc (NASDAQ:FORM) shares are trading higher on Thursday after the company posted stronger‑than‑expected fourth‑quarter results and issued upbeat guidance for the first quarter.
- FormFactor stock is surging to new heights today. Why are FORM shares rallying?
Strong Earnings And Upbeat Outlook
The company reported fourth‑quarter earnings of 46 cents per share versus the 35 cents consensus estimate, rising sharply from 27 cents a year ago. Revenue came in at $215.16 million, also ahead of expectations and up 13.6% year‑over‑year.
Looking ahead, FormFactor expects first‑quarter adjusted earnings of 41 cents to 49 cents per share, well above the 32 cents analysts were projecting. The company also guided for revenue between $220 million and $230 million, comfortably ahead of the $203.53 million consensus estimate.
Non‑GAAP net income reached $36.6 million, up from $21.3 million. Operating cash flow reached $46.0 million in the fourth quarter, with free cash flow coming in at $34.7 million.
Technical Setup Shows Strong Bullish Momentum
FormFactor is currently positioned strongly above its key moving averages, indicating bullish momentum. The stock is trading 15.1% above its 20-day SMA, 33.2% above its 50-day SMA and a remarkable 99% above its 200-day SMA, suggesting a solid upward trend.
The RSI is currently at 53.57, which is neutral territory. This level indicates that FormFactor is in neutral territory, suggesting that there may still be room for upward movement without immediate risk of a pullback. MACD is below its signal line, indicating bearish pressure in the short term.
Traders should keep an eye on the resistance level at $85.50, as a breach above this could signal further bullish momentum. Conversely, if the stock were to drop significantly, it would be essential to identify a support level to gauge potential buying opportunities.
Looking at the 12-month performance, FormFactor’s stock has surged 105.17%, showcasing a powerful upward trajectory over the past year. This impressive gain highlights the stock’s strong position within its 52-week range, currently at 98.2% of that range, indicating it is near its highs.
FORM Price Action: FormFactor shares were up 18.96% at $85.14 at the time of publication on Thursday. The stock is trading near its 52-week high of $85.48, according to Benzinga Pro.
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