Shares of Aehr Test Systems ( AEHR -16.82%) fell 16.8% on Wednesday after the semiconductor test devices business’s weak forward outlook eclipsed an otherwise strong quarterly report.
For Aehr’s financial 2nd quarter 2024 ended Nov. 30, 2023, profits grew 45% year over year to $21.4 million, equating to changed non-GAAP (normally accepted accounting concepts) earnings of $6.7 million, or $0.23 per share. Experts, typically, were just anticipating incomes of $0.19 per share on profits of $20.9 million.
Why Aehr’s strong quarter simply wasn’t sufficient
Aehr CEO Gayn Erickson credited the business’s development to greater need for the business’s wafer-level test and burn-in items. Looking ahead, nevertheless, he likewise kept in mind that the slowing development in the electrical automobile market seems adversely affecting the timing of a number of present and brand-new client orders and prepared capability boosts for silicon carbide gadgets.
” For clearness, we do not see the silicon carbide market reducing; just a short-lived slowing down of the development rate,” Erickson included.
What’s next for Aehr Test Systems’ investors?
As an outcome, Aehr Test Systems now anticipates complete fiscal-year 2024 profits in the series of $75 million to $85 million, helpful for development of 15% to 30% year over year– however likewise below its previous outlook for a minimum of $100 million.
Over the longer term, Aehr stays positive in the practicality of its items and target audience. However in a positive stock exchange that dislikes being informed to successfully rush and wait, it’s not a surprise to see shares of Aehr Test Systems drawing back hard in reaction today.
Steve Symington has no position in any of the stocks pointed out. The Motley Fool has no position in any of the stocks pointed out. The Motley Fool has a disclosure policy