Semiconductor testing company FormFactor (NASDAQ:FORM) will be announcing earnings results tomorrow after market close. Here's what investors should know.

Last quarter FormFactor reported revenues of $171.6 million, down 5.1% year on year, beating analyst revenue expectations by 2.8%. It was a decent quarter for the company, with a significant improvement in its inventory levels but underwhelming revenue guidance for the next quarter.

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 0.4% year on year to $165.3 million, improvement on the 19% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.20 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 missed Wall St's revenue estimates twice over the last two years.

Looking at FormFactor's peers in the semiconductor manufacturing segment, some of them have already reported Q4 earnings results, giving us a hint of what we can expect. KLA Corporation's revenues decreased 16.7% year on year, beating analyst estimates by 1.1% and Teradyne reported revenue decline of 8.4% year on year, missing analyst estimates by 0.9%. KLA Corporation traded down 6.6% on the results, and Teradyne was down 6.7%.

Read our full analysis of KLA Corporation's results here and Teradyne's results here.

There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 3% over the last month. FormFactor is down 0.4% during the same time, and is heading into the earnings with analyst price target of $41, compared to share price of $38.5.

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