Photronics (PLAB) to Post Q1 Earnings: What's in the Offing?
Photronics PLAB is set to report its first-quarter fiscal 2024 results on Feb 21.
For the to-be-reported quarter, PLAB expects revenues between $217 million and $225 million. Non-GAAP earnings are expected to be between 45 and 53 cents.
The Zacks Consensus Estimate for the bottom line is pegged at 49 cents per share, unchanged over the past 30 days, indicating 22.5% year-over-year growth.
The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters, missing in one and matching in the remaining quarter, the average surprise being 8.51%.
Photronics, Inc. Price and EPS Surprise
Photronics, Inc. price-eps-surprise | Photronics, Inc. Quote
Let’s see how things have shaped up before this announcement.
Factors to Note
Photronics’ first-quarter fiscal 2024 results are expected to suffer from sluggishness in the semiconductor end market. Lower demand for IC, particularly from mainstream Asian manufacturers, is expected to have hurt top-line growth in the seasonally weaker to-be-reported quarter.
However, increasing usage of AMOLED in high-end tablets, laptops and automotive applications is expected to have aided top-line growth.
Photronics benefits from long-term agreements with its customers in terms of average selling price and fab utilization rate. Gross margin is expected to have benefited from strong demand for both high-end ICD and FPD products. A favorable product mix and stringent cost control also benefit the bottom line.
What Our Model Indicates
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
Photronics has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:
Inseego INSG has an Earnings ESP of +4.17% and currently has a Zacks Rank #2. You can find the complete list of today’s Zacks #1 Rank stocks here.
Inseego is set to announce fourth-quarter 2023 results on Feb 21. INSG shares have gained 54.2% year to date.
NVIDIA NVDA has an Earnings ESP of +3.67% and a Zacks Rank #2 at present.
NVIDIA is set to announce fourth-quarter fiscal 2024 results on Feb 21. NVDA’s shares have returned 46.6% year to date.
Vertiv VRT currently has an Earnings ESP of +1.90% and a Zacks Rank #2.
Vertiv is set to announce fourth-quarter 2023 results on Feb 21. VRT shares have returned 31.1% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Photronics, Inc. (PLAB) : Free Stock Analysis Report
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Vertiv Holdings Co. (VRT) : Free Stock Analysis Report
