Last Thursday, Aehr Test Systems (NASDAQ: AEHR), which makes semiconductor test and reliability qualification equipment, released its report for the first quarter of fiscal 2024 (ended Aug. 31). Investors weren't satisfied, driving shares down 12.6% on Friday.

The reason for the stock's sell-off was investor disappointment that management didn't increase its full-year guidance. The quarter's results themselves were robust, driven primarily by demand for the company's equipment from manufacturers of silicon carbide semiconductors for use in electric vehicles (EVs). Revenue and adjusted earnings per share (EPS) soared 93% and 260%, respectively, year over year. 

As I wrote in my Aehr earnings article, "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."

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Source Fool.com