FORM - FormFactor stock drops ~13% premarket as Q3 outlook disappoints

FormFactor ( NASDAQ: FORM ) stock had fallen 13.1% to $35 in Thursday premarket trading, as investors looked past a Q2 earnings beat and focused on the company's weak guidance for the next quarter.

FORM after hours on Wednesday reported Q2 non-GAAP EPS of $0.46 which beat estimates by $0.03. Its Q2 revenue of $203.91M also beat expectations by $0.77M.

However, the company said it expected Q3 revenue of $183M +/- $6M, lower than the consensus revenue estimate of $194.23M. Q3 adj. EPS is expected to be $0.21 +/- $0.04, significantly below the consensus EPS estimate of $0.43.

Livermore, Calif.-based FormFactor ( FORM ) designs, makes and sells probe cards and probe stations to semiconductor companies.

"Our sequentially weaker outlook is due primarily to reduced demand for Foundry & Logic probe cards from several major customers in both mobile and compute applications," said FORM CEO Michael Slessor on the earnings conference call .

Slessor also said that the company views the reduction in Foundry & Logic probe card demand as a short-term response by its customers to "changing conditions in their end markets and not a structural change in our business."

Up to Wednesday' close, FORM stock -11.9% YTD.

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