Aehr Test Systems stock had a -13% plunge on October 6, 2023, after reporting financials and fears of a slowdown in EV sales due to ‘higher for longer’ rate fears. AEHR stock is testing its 200 day moving average.
On October 5, 2023, Aehr Test Systems reported Q1 EPS of 18c versus the consensus estimate of 16c. The company reported Q1 revenue of $20.62 million versus the consensus estimate of $19.23 million. Bookings were $18.4 million for the quarter and the backlog as of August 31, 2023, was $22.3 million.
Strong demand from manufacturers of electric vehicles (EVs) as they ramp up orders of silicon-carbide power chips was a major factor in the company’s revenue growth, which increased by 93 percent year over year to $21 million. The company’s first quarter, which also happens to be its seasonally slowest quarter, was characterized by CEO Gayn Erickson as the performance’s best in company history.
Despite exceeding expectations in the first quarter, the company decided against raising its FY24 guidance. To be more precise, the company continues to project revenue of at least $100 million, which is essentially in line with analysts’ projections.
The stock likely experienced the big sell-off due to the company not raising its FY24 guidance because of the prospect of “higher rates for longer”, which could dampen demand for EVs, a market that AEHR is currently very dependent upon.
Aehr Test Systems is a company that develops, manufactures, and sells advanced test and burn-in products to the semiconductor industry. They provide test solutions for integrated circuits (ICs) and semiconductor devices, including wafer-level and singulated-package test and burn-in systems. Aehr Test Systems’ products are used by semiconductor manufacturers to ensure the quality, reliability, and performance of their products before they are shipped to customers.
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