Photronics Earnings: Here’s Why the Stock is Falling Now
Photronics Inc. (NASDAQ:PLAB) delivered a profit and met Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1.30%.
Photronics Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 37.5% to $0.1 in the quarter versus EPS of $0.16 in the year-earlier quarter.
Revenue: Decreased 5.93% to $109.7 million from the year-earlier quarter.
Actual vs. Wall St. Expectations: Photronics Inc. reported adjusted EPS income of $0.1 per share. By that measure, the company missed the mean analyst estimate of $0.1. It beat the average revenue estimate of $109.61 million.
Quoting Management: Constantine (“Deno”) Macricostas, Photronics’ chairman and chief executive officer, commented: “Photronics’ third-quarter revenue growth reflects increased demand for mainstream semiconductor (IC) photomasks across our customer base and increased demand for both high-end and mainstream flat panel display (FPD) photomasks. High-end IC photomask sales were somewhat muted as we experienced delayed customer orders in our memory business due to extended manufacturing of current devices as well as continued foundry business softness as we qualify new nodes with our new tools. We increased operating margin to 9.1% on higher sales volume and reduced operating costs, and achieved net income of $5.9 million, or $0.10 per diluted share, within our guidance range. Our business model provides strong operating leverage on increased revenues and our new technology provides solid growth opportunities as high-end market demand ramps.”
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