Aehr Test Systems (NASDAQ:AEHR) Issues Earnings Results

Aehr Test Systems (NASDAQ:AEHR - Get Free Report) issued its earnings results on Tuesday. The semiconductor company reported $0.11 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.01) by $0.12, FiscalAI reports. The business had revenue of $18.84 million during the quarter, compared to the consensus estimate of $18.69 million. Aehr Test Systems had a negative return on equity of 4.48% and a negative net margin of 14.25%.During the same period last year, the company earned ($0.10) EPS.

Here are the key takeaways from Aehr Test Systems' conference call:

• Aehr guided fiscal 2027 revenue to $130 million to $150 million, implying roughly 2.6x to 3.0x growth versus fiscal 2026, with expected non-GAAP pre-tax margin of 18% to 22%. Management said the range could rise if additional orders come in.
• The company reported a record quarter and backlog, with Q4 bookings of $60.7 million and year-end backlog of $80.6 million, which rose to about $100.6 million after subsequent bookings. Q4 revenue was $18.8 million, up 34% year over year.
• AI and data center markets are now the dominant drivers of the business, with AI processors and silicon photonics contributing more than 80% of Q4 revenue. Management said the company has shifted from being heavily tied to SiC for EVs to being mostly exposed to non-EV end markets.
• Management highlighted several new and expanding customer wins in wafer-level burn-in, including strong demand from an AI processor customer, a successful benchmark at another top-tier AI chip supplier, and growing adoption in silicon photonics and power semiconductors such as GaN and silicon MOSFETs.
• Full-year revenue was $50 million, down 15% year over year, showing that the business is still in a transition phase despite the strong exit rate. Management also noted ongoing patent litigation in China and said memory-related revenue is still expected to be later-cycle upside, not included in current guidance.

Aehr Test Systems Trading Down 5.2%

NASDAQ:AEHR opened at $79.80 on Friday. The stock's 50 day simple moving average is $94.42 and its 200-day simple moving average is $61.43. Aehr Test Systems has a 12-month low of $14.99 and a 12-month high of $126.62. The firm has a market cap of $2.51 billion, a P/E ratio of -329.05 and a beta of 3.17.

Insider Transactions at Aehr Test Systems

In other news, Director Rhea J. Posedel sold 604 shares of the company's stock in a transaction on Wednesday, April 22nd. The stock was sold at an average price of $95.00, for a total value of $57,380.00. Following the sale, the director directly owned 396,375 shares in the company, valued at $37,655,625. This represents a 0.15% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, VP Alistair N. Sporck sold 2,000 shares of Aehr Test Systems stock in a transaction that occurred on Wednesday, April 22nd. The stock was sold at an average price of $93.50, for a total transaction of $187,000.00. Following the completion of the sale, the vice president directly owned 5,177 shares of the company's stock, valued at $484,049.50. The trade was a 27.87% 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 57,825 shares of company stock valued at $5,517,987 in the last three months. 6.80% of the stock is owned by company insiders.

Institutional Investors Weigh In On Aehr Test Systems

Several hedge funds have recently modified their holdings of the stock. Sunbelt Securities Inc. acquired a new stake in Aehr Test Systems during the third quarter worth about $27,000. Caitong International Asset Management Co. Ltd purchased a new position in shares of Aehr Test Systems in the 4th quarter worth about $25,000. State of Wyoming purchased a new position in shares of Aehr Test Systems in the 2nd quarter worth about $28,000. Russell Investments Group Ltd. grew its stake in shares of Aehr Test Systems by 3,500.0% in the third quarter. Russell Investments Group Ltd. now owns 2,448 shares of the semiconductor company's stock valued at $74,000 after buying an additional 2,380 shares in the last quarter. Finally, BNP Paribas Financial Markets grew its stake in shares of Aehr Test Systems by 99.5% in the third quarter. BNP Paribas Financial Markets now owns 5,533 shares of the semiconductor company's stock valued at $167,000 after buying an additional 2,759 shares in the last quarter. 69.69% of the stock is owned by institutional investors and hedge funds.

Analyst Ratings Changes

A number of analysts recently issued reports on the company. Weiss Ratings downgraded Aehr Test Systems from a "sell (d+)" rating to a "sell (d)" rating in a research report on Wednesday. Craig Hallum reaffirmed a "buy" rating and issued a $125.00 target price on shares of Aehr Test Systems in a research report on Wednesday. Wall Street Zen raised Aehr Test Systems from a "strong sell" rating to a "sell" rating in a research report on Saturday, June 6th. Finally, Lake Street Capital reaffirmed a "buy" rating and issued a $110.00 target price on shares of Aehr Test Systems in a research report on Wednesday. Three research analysts have rated the stock with a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has an average rating of "Hold" and a consensus target price of $117.50.

About Aehr Test Systems

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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