Aehr Test Systems stock surged 29.3% in pre-open trading following a fiscal fourth-quarter report that outstripped Wall Street forecasts on key measures. The company released results after the market close on Tuesday, with adjusted earnings per share of $0.11 versus a consensus that expected a loss of $0.01. Revenue for the quarter came in at $18.8 million, topping the analyst forecast of $17.92 million and marking a 33% increase from the same quarter a year earlier.
The headline numbers were accompanied by substantially stronger forward-looking indicators. Quarterly bookings climbed to a record $60.7 million, up from $11.1 million in the prior-year period. Management said the company’s effective backlog expanded to a record $100.6 million.
Management provided aggressive guidance for fiscal 2027, forecasting revenue of $130 million to $150 million. That projection implies growth of 160% to 200% and sits well above a roughly $85 million consensus estimate. Alongside the revenue target, the company outlined expected non-GAAP pretax margins of 18% to 22% for fiscal 2027.
On the earnings call CEO Gayn Erickson emphasized a notable change in the company’s end-market composition, saying, "just two years ago, over 95% of our business was tied to silicon carbide for electric vehicles, whereas today, almost 95% of our fiscal year 2026 revenue came from markets not electric vehicle silicon carbide," highlighting a pivot toward AI processors and silicon photonics.
The broader market backdrop was also constructive for risk assets. In pre-market trade the Nasdaq was up 0.5%, bolstered by better-than-expected June CPI data released the prior session that reduced the odds of a near-term Federal Reserve rate hike. Investor sentiment in semiconductors was further supported by an upbeat demand signal from ASML after it raised its annual sales forecast. While semiconductor peers broadly benefited from improved risk appetite, Aehr’s company-specific developments were far larger drivers of its share move.
The combined effect of a sizable earnings surprise, record bookings and backlog, a pronounced end-market transformation toward AI-related markets, and guidance that meaningfully reset growth expectations produced one of the largest single-session moves for the shares in recent memory. The rally carried the stock from a 52-week low of $14.01 to trade near the $93 to $95 range in pre-market transactions.
Summary
Aehr Test reported a clear beat on adjusted EPS and revenue, set records for quarterly bookings and backlog, and issued fiscal 2027 guidance that implies a large jump in revenue and healthy non-GAAP pretax margins. Management highlighted a rapid shift in sales mix away from EV silicon carbide toward AI processors and silicon photonics, a change that underpinned investor enthusiasm and a significant pre-market share rally.
Key points
- Quarterly adjusted EPS: $0.11, versus consensus loss of $0.01.
- Quarterly revenue: $18.8 million, above $17.92 million estimate and up 33% year-over-year.
- Record quarterly bookings of $60.7 million and an effective backlog of $100.6 million.
- Fiscal 2027 revenue guidance: $130 million to $150 million, implying 160% to 200% growth versus a roughly $85 million consensus; projected non-GAAP pretax margins of 18% to 22%.
- Management note on end-market shift: a move away from EV silicon carbide toward AI processors and silicon photonics, reflected in fiscal 2026 revenue mix.
Risks and uncertainties
- Guidance execution risk - the fiscal 2027 revenue and margin targets represent a substantial step-up and depend on future performance matching management’s projections, which affects company and semiconductor sector outlooks.
- Market-sensitivity risk - while sector sentiment helped, Aehr’s share move was driven primarily by company-specific results and outlook; any deterioration in bookings or backlog could materially alter investor sentiment, with implications for semiconductor equipment suppliers and related AI-infrastructure suppliers.
- Concentration-shift risk - the rapid change in end-market mix away from EV silicon carbide toward AI and silicon photonics is significant; if demand in those newer markets slows, it could affect Aehr’s revenue trajectory and expectations across AI-infrastructure supply chains.
This article presents the company’s reported results, guidance and direct management comments as disclosed in the fiscal fourth-quarter release and the associated earnings call. It does not add or infer information beyond those disclosures.