Aehr Test Systems (NASDAQ:AEHR) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

Key Points

• Aehr Test Systems reported quarterly EPS of $0.05, beating analysts’ consensus estimate of -$0.01 by $0.06.
• The stock rose 5.9% in Tuesday trading to $72.01 on higher-than-average volume, reflecting a positive market reaction to the earnings report.
• Despite the earnings beat, the company still showed weak profitability metrics, including a negative net margin of 25.23% and a negative return on equity of 7.15%.

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) posted its earnings results on Tuesday. The semiconductor company reported $0.05 earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.01) by $0.06, Zacks reports. Aehr Test Systems had a negative return on equity of 7.15% and a negative net margin of 25.23%.

Aehr Test Systems Trading Up 5.9%

NASDAQ:AEHR traded up $3.99 during mid-day trading on Tuesday, hitting $72.01. The stock had a trading volume of 3,519,845 shares, compared to its average volume of 2,255,694. Aehr Test Systems has a twelve month low of $14.01 and a twelve month high of $126.62. The stock has a 50-day simple moving average of $95.13 and a two-hundred day simple moving average of $60.18. The company has a market capitalization of $2.26 billion, a PE ratio of -189.50 and a beta of 3.17.

Insider Activity at Aehr Test Systems

In other Aehr Test Systems news, Director Rhea J. Posedel sold 17,115 shares of the stock in a transaction that occurred on Wednesday, April 22nd. The shares were sold at an average price of $100.00, for a total value of $1,711,500.00. Following the sale, the director directly owned 45,261 shares of the company's stock, valued at approximately $4,526,100. This represents a 27.44% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Fariba Danesh sold 8,000 shares of the firm's stock in a transaction on Thursday, April 16th. The shares were sold at an average price of $82.63, for a total transaction of $661,040.00. Following the completion of the sale, the director owned 13,143 shares in the company, valued at $1,086,006.09. The trade was a 37.84% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 123,606 shares of company stock worth $10,969,625 over the last ninety days. 6.80% of the stock is currently owned by insiders.

Institutional Trading of Aehr Test Systems

A number of hedge funds and other institutional investors have recently bought and sold shares of AEHR. Wellington Management Group LLP lifted its holdings in Aehr Test Systems by 129.9% during the 4th quarter. Wellington Management Group LLP now owns 830,664 shares of the semiconductor company's stock worth $16,771,000 after buying an additional 469,400 shares during the last quarter. Geode Capital Management LLC increased its holdings in shares of Aehr Test Systems by 0.8% in the 4th quarter. Geode Capital Management LLC now owns 685,694 shares of the semiconductor company's stock valued at $13,846,000 after acquiring an additional 5,591 shares during the last quarter. State Street Corp raised its position in shares of Aehr Test Systems by 3.7% during the 4th quarter. State Street Corp now owns 624,085 shares of the semiconductor company's stock worth $12,600,000 after acquiring an additional 21,982 shares in the last quarter. Invesco Ltd. raised its position in shares of Aehr Test Systems by 1,137.2% during the 3rd quarter. Invesco Ltd. now owns 366,570 shares of the semiconductor company's stock worth $11,037,000 after acquiring an additional 336,940 shares in the last quarter. Finally, Tudor Investment Corp ET AL lifted its stake in Aehr Test Systems by 1.9% during the fourth quarter. Tudor Investment Corp ET AL now owns 181,500 shares of the semiconductor company's stock worth $3,664,000 after purchasing an additional 3,460 shares during the last quarter. 69.69% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

Several research firms have weighed in on AEHR. Lake Street Capital reaffirmed a "buy" rating on shares of Aehr Test Systems in a research report on Wednesday, April 8th. Wall Street Zen raised shares of Aehr Test Systems from a "strong sell" rating to a "sell" rating in a research report on Saturday, June 6th. Craig Hallum raised shares of Aehr Test Systems from a "hold" rating to a "buy" rating and set a $68.00 price objective for the company in a research note on Wednesday, April 8th. Finally, Weiss Ratings upgraded shares of Aehr Test Systems from a "sell (d)" rating to a "sell (d+)" rating in a report on Monday, May 4th. Three analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, Aehr Test Systems has a consensus rating of "Hold" and a consensus price target of $68.00.

Aehr Test Systems Company Profile

Aehr Test Systems develops, manufactures and sells semiconductor test and burn-in equipment used by device manufacturers to ensure quality and reliability of integrated circuits. Its products are designed for wafer-level reliability assessment, functional test and stress screening of memory devices, system-on-chips, optical components and power semiconductors. By focusing on wafer-level burn-in and testing processes, the company helps reduce cost and improve yield for high-volume semiconductor production.

The company's product portfolio includes FOX series wafer probe test and burn-in systems as well as ABTS burn-in ovens.

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