Photronics (PLAB) to Post Q4 Earnings: What's in the Offing?
Photronics PLAB is set to report its fourth-quarter fiscal 2023 results on Dec 13.
For the to-be-reported quarter, PLAB expects revenues between $222 million and $232 million. Non-GAAP earnings are expected between 51 and 59 cents.
The Zacks Consensus Estimate for the bottom line is pegged at 53 cents per share, unchanged over the past 30 days, indicating an 11.67% year-over-year decline.
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 11.45%.
Photronics, Inc. Price, Consensus and EPS Surprise
Photronics, Inc. price-consensus-eps-surprise-chart | Photronics, Inc. Quote
Let’s see how things have shaped up before this announcement.
Factors to Note
Photronics has been suffering 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 to-be-reported quarter.
However, increasing usage of AMOLED in high-end tablets, laptops and automotive is expected to have aided top-line growth. The company witnessed strong utilization of its fab in the fiscal third quarter. The trend is expected to have continued in the fiscal fourth quarter.
Photronics benefits from long-term agreements with its customers in terms of average selling price and fab utilization rate. 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:
Costco Wholesale COST has an Earnings ESP of +1.40% and currently has a Zacks Rank #3. You can find the complete list of today’s Zacks #1 Rank stocks here.
Costco is set to announce first-quarter fiscal 2024 results on Dec 14. COST shares have gained 27.8% year to date.
Adobe ADBE has an Earnings ESP of +0.24% and a Zacks Rank #3 at present.
Adobe is set to announce fourth-quarter fiscal 2023 results on Dec 13. ADBE shares have returned 82.6% year to date.
Darden Restaurants DRI currently has an Earnings ESP of +5.58% and a Zacks Rank #3.
Darden is set to announce second-quarter fiscal 2024 results on Dec 15. DRI shares have returned 11.1% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Darden Restaurants, Inc. (DRI) : Free Stock Analysis Report
Costco Wholesale Corporation (COST) : Free Stock Analysis Report
Adobe Inc. (ADBE) : Free Stock Analysis Report
Photronics, Inc. (PLAB) : Free Stock Analysis Report
