Why FormFactor, Inc. Is Tanking Today

In response to sharing disappointing guidance with investors, shares of FormFactor (NASDAQ: FORM), an equipment supplier to the semiconductor industry, fell as much as 13% in early morning trading on Wednesday.

FormFactor's third-quarter results looked good and continued the company's streak of beating estimates. Revenue came in at $143.7 million, which was at the high end of management's guidance range and also compared favorably to Wall Street's estimate. Non-GAAP EPS of $0.34 was just as impressive and beat market-watchers estimates by $0.02.

However, management's guidance for the upcoming quarter put traders in a foul mood. The company expects revenue to land between $126 million and $134 million and for non-GAAP EPS to come in around $0.24 to $0.30. While those numbers represent decent year-over-year growth, the midpoint of this range represents a sequential decline.

Source: Fool.com