Aehr Test Systems' (NASDAQ: AEHR) stock tumbled 13% on Oct. 6 after the semiconductor-testing-equipment maker posted its latest earnings report. For the first quarter of its fiscal 2024, which ended on Aug. 31, revenue jumped 93% year over year to $20.6 million and exceeded analysts' expectations by $1.4 million. The company also quadrupled its adjusted net income from $1.3 million to $5.2 million, or $0.18 per share, clearing the consensus forecast by two cents.

Aehr's growth rates were impressive, but its shares might have been due for a breather. Even after its latest post-earnings drop, the stock remains up nearly 180% over the past 12 months. It also still doesn't look like a bargain at 37 times forward earnings and 10 times this year's sales. So, is it the right time to start a new position in Aehr?

Image source: Getty Images.

Continue reading

Source Fool.com