Why Aehr Test Systems Stock Is Tumbling Wednesday

Aehr Test Systems AEHR shares are trading lower Wednesday after the company reported quarterly results and lowered its full-year revenue guidance.

Q2 Earnings: Aehr Test Systems reported fiscal second-quarter revenue of $21.4 million, which beat estimates of $20.89 million, according to Benzinga Pro. The company reported quarterly earnings of 23 cents per share, which beat estimates of 19 cents per share.

Aehr reported $2.2 million in bookings for the quarter. The company had a backlog of $3 million as of Nov. 30. Aehr ended the quarter with $50.5 million in cash and equivalents.

“In the last sixty days, we have seen how the slowing of the growth rate of the electric vehicle market has had a negative impact on the timing of several current and new customer orders and capacity increases for silicon carbide devices used in them,” said Gayn Erickson, president and CEO of Aehr Test Systems.

“We are also experiencing the impact of shifts in our customers’ product mix, which specifically includes an increase in WaferPak full wafer contactors from our lead silicon carbide customer. The net of this is that we now expect a delay in the timing of new orders from current and new customers that will most likely impact this fiscal year’s revenue.”

Aehr lowered its full-year revenue guidance. The company said it now expects full-year 2024 revenue of $75 million to $85 million, representing growth of 15% to 30%.

AEHR Price Action: Aehr Test Systems shares were down 18.6% at $18.19 at the time of publication, according to Benzinga Pro.

This illustration was generated using artificial intelligence via MidJourney.