Why Aehr Test Systems Stock Plunged Today

Shares of Aehr Test Systems (NASDAQ: AEHR) fell 16.8% on Wednesday after the semiconductor test equipment company's weak forward outlook overshadowed an otherwise solid quarterly report.

For Aehr's fiscal second quarter 2024 ended Nov. 30, 2023, revenue grew 45% year over year to $21.4 million, translating to adjusted non-GAAP (generally accepted accounting principles) net income of $6.7 million, or $0.23 per share. Analysts, on average, were only expecting earnings of $0.19 per share on revenue of $20.9 million.

Aehr CEO Gayn Erickson credited the company's growth to higher demand for the company's wafer-level test and burn-in products. Looking ahead, however, he also noted that the slowing growth in the electric vehicle market appears to be negatively impacting the timing of several current and new customer orders and planned capacity increases for silicon carbide devices.

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Source Fool.com