Results: FormFactor, Inc. Exceeded Expectations And The Consensus Has Updated Its Estimates

Shareholders will be ecstatic, with their stake up 28% over the past week following FormFactor, Inc.'s (NASDAQ:FORM) latest annual results. It looks like a credible result overall - although revenues of US$785m were in line with what the analysts predicted, FormFactor surprised by delivering a statutory profit of US$0.69 per share, a notable 11% above expectations. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We thought readers would find it interesting to see the analysts latest (statutory) post-earnings forecasts for next year.

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Taking into account the latest results, the most recent consensus for FormFactor from ten analysts is for revenues of US$912.6m in 2026. If met, it would imply a solid 16% increase on its revenue over the past 12 months. Per-share earnings are expected to surge 94% to US$1.36. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$861.7m and earnings per share (EPS) of US$1.09 in 2026. There's been a pretty noticeable increase in sentiment, with the analysts upgrading revenues and making a great increase in earnings per share in particular.

See our latest analysis for FormFactor

With these upgrades, we're not surprised to see that the analysts have lifted their price target 29% to US$84.11per share. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values FormFactor at US$100.00 per share, while the most bearish prices it at US$64.00. Analysts definitely have varying views on the business, but the spread of estimates is not wide enough in our view to suggest that extreme outcomes could await FormFactor shareholders.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. It's clear from the latest estimates that FormFactor's rate of growth is expected to accelerate meaningfully, with the forecast 16% annualised revenue growth to the end of 2026 noticeably faster than its historical growth of 0.2% p.a. over the past five years. Compare this with other companies in the same industry, which are forecast to see revenue growth of 20% annually. So it's clear that despite the acceleration in growth, FormFactor is expected to grow meaningfully slower than the industry average.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards FormFactor following these results. Fortunately, they also upgraded their revenue estimates, although our data indicates it is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple FormFactor analysts - going out to 2027, and you can see them free on our platform here.

We also provide an overview of the FormFactor Board and CEO remuneration and length of tenure at the company, and whether insiders have been buying the stock, here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.