Cohu Inc. stock fell 6.86% following the release of fourth-quarter financial results that revealed a significant divergence between top-line performance and profitability metrics. The semiconductor test equipment manufacturer reported revenue of $122.2 million, representing a 30% year-over-year increase that aligned with market consensus. However, the company posted an adjusted loss of $0.15 per share, substantially underperforming analyst expectations of a $0.06 profit per share, which appeared to weigh heavily on investor sentiment.
The earnings miss on the bottom line reflects margin pressures despite the robust revenue expansion. Management indicated expectations for first-quarter revenue to remain roughly consistent with fourth-quarter levels while projecting gross margins will improve to approximately 45% moving forward. The company also provided guidance for high-bandwidth memory product sales between $15 million and $20 million for the full year, positioning this segment as a growth driver amid the broader profitability challenges.
The disconnect between revenue growth and earnings performance underscores the operational headwinds Cohu faces as it navigates demand fluctuations in the semiconductor equipment sector. Investors will likely monitor upcoming quarters closely to assess whether the anticipated margin improvements materialize and whether the HBM product segment can deliver on management's forecasts.