Aehr Test Systems shares surged on Friday after the semiconductor equipment maker beat Wall Street's estimates for its fiscal first quarter and kept its robust growth targets for the full year. Aehr stock jumped nearly 24% on the news.
The Fremont, Calif.-based company late Thursday said it earned an adjusted 5 cents a share on sales of $10.7 million in the quarter ended Aug. 31. Analysts polled by FactSet expected Aehr earnings of a penny a share on sales of $8.52 million. In the year-earlier period, Aehr lost 2 cents a share on sales of $5.65 million.
Aehr makes semiconductor test and reliability qualification equipment. The company said its 89% revenue growth in the quarter was due to strong sales of gear to test and process silicon carbide power chips used in electric vehicles.
"We are currently engaged or in discussions with almost all the existing and future silicon carbide suppliers regarding our unique, low-cost, multi-wafer level test and burn-in solution," Chief Executive Gayn Erickson said in a news release.
Maintains Full-Year Guidance
On the stock market today, Aehr stock surged 23.9% to close at 17.19. During the regular session Thursday, Aehr stock fell 3.1% to 13.87.
For its fiscal year ending May 31, Aehr reiterated its prior guidance for total revenue of at least $60 million to $70 million. The midpoint of $65 million is higher than Wall Street's estimate for $62 million. In its last fiscal year, it generated sales of $50.8 million.
Also, Aehr continues to expect bookings to grow faster than revenue in fiscal 2023 as the ramp in demand for silicon carbide in electric vehicles increases exponentially throughout the decade.
In addition to EVs, silicon carbide chips have bright prospects in industrial, solar, wind, and charging infrastructure markets.
Aehr Stock Ranks Second In Group
Aehr stock is on IBD's Tech Leaders list. It has been consolidating for the past seven weeks with a buy point of 19.53, according to IBD MarketSmith charts.
Aehr stock ranks second out of 29 stocks in IBD's semiconductor equipment industry group. It has an IBD Composite Rating of 89 out of 99, according to IBD Stock Checkup.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
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