It's been a good week for FormFactor, Inc. (NASDAQ:FORM) shareholders, because the company has just released its latest first-quarter results, and the shares gained 6.8% to US$30.26. It looks like a credible result overall - although revenues of US$171m were what the analysts expected, FormFactor surprised by delivering a (statutory) profit of US$0.08 per share, an impressive 47% above what was forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

Our free stock report includes 1 warning sign investors should be aware of before investing in FormFactor. Read for free now.

Taking into account the latest results, FormFactor's ten analysts currently expect revenues in 2025 to be US$773.0m, approximately in line with the last 12 months. Statutory per share are forecast to be US$0.71, approximately in line with the last 12 months. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$780.7m and earnings per share (EPS) of US$0.79 in 2025. The analysts seem to have become a little more negative on the business after the latest results, given the small dip in their earnings per share numbers for next year.

Check out our latest analysis for FormFactor

It might be a surprise to learn that the consensus price target was broadly unchanged at US$40.22, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on FormFactor, with the most bullish analyst valuing it at US$52.00 and the most bearish at US$26.00 per share. Note the wide gap in analyst price targets? This implies to us that there is a fairly broad range of possible scenarios for the underlying business.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. We can infer from the latest estimates that forecasts expect a continuation of FormFactor'shistorical trends, as the 1.2% annualised revenue growth to the end of 2025 is roughly in line with the 1.1% annual growth over the past five years. Compare this with the broader industry (in aggregate), which analyst estimates suggest will see revenues grow 16% annually. So it's pretty clear that FormFactor is expected to grow slower than similar companies in the same industry.

The Bottom Line

The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for FormFactor. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple FormFactor analysts - going out to 2027, and you can see them free on our platform here.

Even so, be aware that FormFactor is showing 1 warning sign in our investment analysis , you should know about...

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.