Photronics (PLAB) Q4 Earnings Top Estimates, Revenues Up Y/Y
Photronics PLAB reported fourth-quarter fiscal 2023 non-GAAP earnings of 60 cents per share, which surpassed the Zacks Consensus Estimate by 13.21% and increased 17.6% year over year.
Revenues of $227.5 million inched up 1.5% year over year.
Quarter Details
Integrated Circuit revenues climbed 1% sequentially and 5% year over year to $164.5 million. The top line benefited from the strong revenue performance of high-end IC masks (using 28 nanometer and smaller technology), which jumped 27% sequentially. However, mainstream revenues decreased 9%.
FPD revenues rose 17% year over year to $63 million. Sequentially, revenues increased 3%. Photronics’ high-end revenues increased 7%.
China revenues declined from 53% of total revenues in the fiscal third quarter to 44% in the reported quarter.
Photronics, Inc. Price, Consensus and EPS Surprise
Photronics, Inc. price-consensus-eps-surprise-chart | Photronics, Inc. Quote
Fourth-quarter fiscal 2023 gross margin expanded 150 basis points (bps) year over year to 37.3%.
Research & development expenses, as a percentage of revenues, decreased 30 bps year over year to 1.5%. However, sales and marketing expenses, as a percentage of revenues, increased 40 bps year over year to 7.4%.
Operating income was $64.8 million, up 7% year over year. Operating margin expanded 150 bps year over year to 28.5%.
Balance Sheet & Cash Flow
As of Oct 31, 2023, cash and cash equivalents were $512.2 million, while long-term debt was $18 million.
Cash generated from operating activities was $106.6 million and cash invested in organic growth through capital expenditures was $52.5 million.
Guidance
For the first quarter of fiscal 2024, Photronics expects revenues between $217 million and $225 million.
Earnings are expected between 45 cents and 53 cents per share.
Zacks Rank & Stocks to Consider
Photronics currently has a Zacks Rank #3 (Hold).
Flex FLEX, Badger Meter BMI and Ceridian HCM CDAY are some better-ranked stocks in the broader sector, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Flex shares have gained 5.8% in the past three months. The long-term earnings growth rate is pegged at 12.39%.
Badger Meter shares have declined 1.7% in the past three months. The long-term earnings growth rate is pegged at 20.39%.
Ceridian shares have lost 2.4% over the same timeframe. The long-term earnings growth rate is pegged at 44.15%.
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