Aehr Test Systems (AEHR)

Aehr Test Systems (AEHR) stock dropped by 16.82% due to the company's report of a robust quarterly performance for its fiscal second quarter 2024, which ended on November 30, 2023.

• Positive revenue: The semiconductor test equipment company recorded impressive figures, with revenue surging by 45% year over year to reach $21.4 million. Moreover, the company reported adjusted non-GAAP net income of $6.7 million or $0.23 per share, surpassing analysts' expectations. These results reflected strong demand for Aehr's wafer-level test and burn-in products, underlining the company's growth potential.
• Reduced Full-Year Outlook Spurs Stock Decline: Despite the positive quarterly results, Aehr Test Systems faced a stock decline of 16.82%. This decline was primarily attributed to the company's revised full-year outlook for fiscal year 2024. The company now anticipates revenue for the full fiscal year to fall within the range of $75 million to $85 million. While this still represents growth of 15% to 30% year over year, it marks a significant reduction from Aehr's earlier guidance of achieving at least $100 million in revenue for the fiscal year.
• Impact of Electric Vehicle Market Slowdown: Aehr CEO Gayn Erickson addressed the concerns surrounding the revised outlook. He highlighted that the deceleration in growth within the electric vehicle market was affecting the timing of customer orders and planned capacity increases for silicon carbide devices. However, Erickson clarified that Aehr did not foresee a decline in the silicon carbide market but rather a temporary slowdown in its growth rate. The company's long-term confidence in its products and target markets remained intact.
• Market Reaction to Revised Outlook: The market's reaction to Aehr's revised outlook was a substantial stock decline. Investors, anticipating more significant revenue figures, reacted negatively to the adjusted guidance. While Aehr Test Systems acknowledges the temporary challenges posed by the electric vehicle market, it maintains its commitment to its product offerings and believes in their viability over the long term.

Aehr Test Systems Stock (AEHR) dropped by 9.96% from $36.66 to $33.01 in the trading on Wednesday October 18, 2023. The reasons why AEHR stock down today include:

• Surging bond yields: Investors appear to be selling AEHR stocks over fear of rapidly rising long-term Treasury bond yields, which surged yet again today, reaching levels not seen since 2006. The growth of renewables requires capital investment, while at the same time, many renewable energy stocks trade at high valuations, reflecting the anticipation of continued growth. All of renewable energy stocks are high sensitivity to interest rates.
• Insider selling: Aehr Test Systems (AEHR) director and Vice President-Contactor Business Unit Alistair Sporck disclosed sale of 955 shares of the company at a transaction value of $35,956. Sporck now owns 11,988 AEHR shares.

Aehr Test Systems (AEHR) dropped by 12.60% from $44.21 to $38.64 in the trading on Friday October 6, 2023. The reasons why stock AEHR down today includes:

• Fiscal Q1 2024 report: Its bookings for the quarter were a weak $18.4 million - not enough to replace the sales executed on in the quarter, and implying a slowdown in business going forward.
• Free cash flow: The company's total reported net profit for the quarter was a strong $4.7 million, actual cash profits came in significantly weaker at just $3.6 million, indicating that the quality of Aehr's earnings may not be as strong as it seems.
• Guidance for FY24: Management did forecast of a slowdown from Q1's blistering pace as the year progresses.

Aehr Test Systems (AEHR) stock fell 11.03% after announcing that it will report financial results for its fiscal 2023 fourth quarter and full year ended May 31, 2023 on Thursday, July 13, 2023 following the close of the market. The Company will host a conference call and webcast at 5:00 p.m. Eastern time to discuss the results.

https://www.globenewswire.com/news-release/2023/07/05/2699924/11245/en/Aehr-Test-Systems-to-Announce-Fiscal-2023-Fourth-Quarter-and-Full-Year-Financial-Results-on-July-13-2023.html