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FormFactor Stock Plummets 22.81% After Disappointing Q1 Profit Outlook

FormFactor's shares took a significant hit after the company released its first-quarter profit outlook, which fell short of analysts' expectations. The semiconductor testing and measurement company reported fourth-quarter earnings with an EPS of $0.27, missing the consensus estimate of $0.29. While revenue increased by $21.32 million compared to the same period last year, the market's focus was on the company's guidance for the upcoming quarter. FormFactor projected earnings between $0.03 and $0.11 per share for Q1 2025, which disappointed investors and analysts who had anticipated stronger performance.

The company's guidance overshadowed its revenue growth and led to a sharp decline in its stock price. The market's reaction highlights the importance of forward-looking statements in influencing investor sentiment, especially when they fall below expectations. The semiconductor industry has been under pressure due to broader market concerns, and FormFactor's cautious outlook added to the negative sentiment.

FormFactor (FORM) shares closed at $41.12, up 3.84% from the previous close of $39.6. However, the stock plummeted 22.81% in after-hours trading, bringing the price down to $31.74.