Aehr Test Systems loses 14% despite record fiscal Q1 earnings 📉

Shares of Aehr Systems (AEHR.US) are trading down 14% today after the company decided to keep its annual profit forecast unchanged despite a record fiscal Q1 2024 quarter. The company's 2022 earnings rose 44.2%, compared to 76% growth in the current year. .

Net revenue: $20.6 million vs. $19.2 million forecast and $10,7 million in Q1 2023 (FactSet, 96% y/y growth)

GAAP Earnings per share (EPS) : $0.18 vs. $0.16 forecasts (FactSet, 260% y/y increase) ($4,7 million vs $589k in Q1 2023)

• For the fiscal year ending May 31, the company maintained its previous estimate of $100 million in revenue, or 50% growth, and 90% growth in net income ($28 million GAAP). It is worth noting that the first fiscal quarter for the company (Q3) seasonally has been the weakest for the company so far, and even so, the latter - turned out to be a record in terms of net profits. 
• However, over the horizon of the next five years, analysts expect this rate to decline to an average of 20%. The rapid appreciation of the company's shares has resulted in relatively high valuation multiples such as P/B (16), P/E (77) and P/S (15). The company will not present its next financial report until January 4, 2024.
• Aehr makes semiconductor test and reliability qualification equipment such us burn-in of silicon-carbide power chips, mostly for electric vehicles. The company Aehr provides test and analysis to idenfytify potential defects and risks. Aehr provides also testing tools for solar energy-related technologies.

Shares of Aehr Test Systems (AEHR.US) retreated below the SMA200 (red line) today - but demand quickly lifted the stock from the $36 area, helped by a broader improvement in Wall Street sentiments. Source: xStation5