Semiconductor testing company FormFactor (NASDAQ:FORM) will be reporting earnings tomorrow afternoon. Here's what investors should know.

Last quarter FormFactor reported revenues of $167.4 million, down 15.1% year on year, beating analyst revenue expectations by 2.96%. It was a weaker quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

Is FormFactor buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting FormFactor's revenue to decline 20.4% year on year to $162.3 million, a further deceleration on the 8.42% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.12 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 1.99%.

Looking at FormFactor's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Lattice Semiconductor delivered top-line growth of 17.8% year on year, beating analyst estimates by 1.47% and ON Semiconductor reported revenues up 0.45% year on year, exceeding estimates by 3.66%. Lattice was down 1.16% on the results, and ON Semiconductor was up 5.56%. Read our full analysis of Lattice Semiconductor's results here and ON Semiconductor's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 2.92% over the last month. FormFactor is up 10.5% during the same time, and is heading into the earnings with analysts' price target of $35.50, compared to share price of $37.16.

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The author has no position in any of the stocks mentioned.