Aehr Test Systems Sinks 12% Despite Earnings Surging on Strong EV Market Demand
Aehr Test Systems (NASDAQ: AEHR) stock dropped 12.1% in Thursday's after-hours trading, following the semiconductor test and reliability qualification equipment supplier's release of its results for the first quarter of fiscal 2024 (ended Aug. 31). Results were strong, primarily driven by increasing demand for the company's equipment from manufacturers of silicon carbide semiconductors for use in electric vehicles (EVs).
So why did the stock drop in after-hours trading? The primary reason is likely that investors were disappointed that management didn't raise fiscal 2024 guidance.
Investors have very high expectations for the company's performance, as evidenced by shares surging about 119% in 2023 through Thursday's regular trading session. So, as is rather common in such cases, investors are often not satisfied with such a company merely reiterating full-year guidance, as Aehr management did.
Source Fool.com
