COHU - Cohu shares plunge after weak gross margin forecast

Cohu (COHU) shares are down 18% after yesterday's Q1 beats were offset by Q2 guidance that raised margin concerns.For Q1, revenue was up 62% on the year to $225.5M and EPS was $0.89, topping consensus by $0.10.  Gross margin was 45.6%.The Q2 outlook includes revenue of $234-250M and gross margin of 42-43%,D.A. Davidson analyst Thomas Diffely says the gross margin decline forecast for Q2 implies that earnings will miss Street estimates. The analyst attributes the softness to the high volume of low-margin Handlers for the automotive segment.Earnings presentation / Press release.

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Cohu shares plunge after weak gross margin forecast