FormFactor and WEX report Wednesday: what investors should watch

what happened

Semiconductor testing company FormFactor and payments provider WEX will report quarterly earnings after the close on Wednesday, according to stockstory.org. FormFactor posted revenue of $258.2 million last quarter, up 31.9% year on year. Analysts expect revenue to rise 33.5% this quarter, after a 2.5% decline in the same quarter a year earlier. Analysts have generally kept their estimates unchanged over the past 30 days, and the company rarely misses revenue forecasts.

WEX reported revenue of $753.5 million last quarter, up 14.2%. The market expects revenue growth of 8.9% this quarter, compared with 4% a year earlier. Over the past two years WEX has missed revenue estimates several times. It is the first of its peers to report this season, so there are no sector results yet to use as a guide. Its shares are up 8.5% over the past month.

Semiconductor stocks have fallen 11.2% on average over the last month, and FormFactor shares are down 21.6% in the same period. The average analyst price target for FormFactor is $152.22, against a current share price of $102.64.

why it matters

Both reports matter mainly for the individual stocks rather than the broader market. For FormFactor, investors will compare actual revenue growth with expectations, given the recent share decline and weakness across chip stocks. For WEX, the key question is whether it can meet its revenue forecast after several earlier misses. Peer results so far show that the market can react sharply even when revenue targets are met.

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