Chip test maker Aehr extending gains after earnings and revenue beats, upbeat outlook
Shares of Aehr, a designer, manufacturer, and seller of equipment used in the semiconductor industry, were rising sharply after better-than-expected earnings and revenue, as well as upbeat guidance / Photo: Aehr Test Systems
The stock of Aehr Test Systems, a mid-cap maker of semiconductor test and burn-in solutions, surged more than 30% in premarket trading on Wednesday, extending a rally that began the previous day. The company reported financial results that topped Wall Street expectations and issued an upbeat outlook for its fiscal 2027.
Details
Aehr Test Systems jumped 30% to $93.75 per share in the opening minutes of early trading on Wednesday, extending gains from Tuesday, when the stock climbed around 6% to $72.00 per share.
The company reported that net revenue for the fourth quarter of its fiscal 2026, ended May 29, increased 33% year over year to $18.8 million. Adjusted net income was $0.11 per diluted share, versus an adjusted net loss of $0.01 per diluted share in the same quarter of fiscal 2025.
Wall Street had expected Aehr to report an adjusted net loss of $0.01 per share on revenue of $18.7 million, Barron's notes.
The company's backlog stood at $80.6 million at the end of the fiscal year and reached $100.6 million including bookings received after May 29. That gives Aehr visibility into fiscal 2027 revenue of $130-150 million, representing 2.6-3.0 times fiscal 2026 revenue, the company said.
The outlook is based on the company's current backlog and expected customer demand from AI processors, silicon photonics, and power semiconductors, President and CEO Gayn Erickson said. "This outlook is based on the information available to us today, including our current backlog and anticipated customer demand. We continue to pursue additional orders from existing and prospective customers."
Among other applications, the company's products are used to test logic, memory, photonic, and power semiconductor devices on wafers before they are integrated into final packages.
What analysts say
Aehr shares have surged around 257% year to date. However, Wall Street still sees further upside. The stock has four "buy" calls versus one "hold" rating from coverage analysts. The average target price is $81 per share, implying 12.5% upside from the Tuesday closing price.
