Q2 Earnings Highlights: Photronics (NASDAQ:PLAB) Vs The Rest Of The Semiconductor Manufacturing Stocks
Looking back on semiconductor manufacturing stocks' Q2 earnings, we examine this quarter's best and worst performers, including Photronics (NASDAQ:PLAB) and its peers.
The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.
The 14 semiconductor manufacturing stocks we track reported a slower Q2; on average, revenues were in line with analyst consensus estimates while next quarter's revenue guidance was 1.45% below consensus. Tech valuation multiples have reverted to their historical means after reaching highs in early 2021, and semiconductor manufacturing stocks have not been spared, with share prices down 12.5% on average, since the previous earnings results.
Photronics (NASDAQ:PLAB)
Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.
Photronics reported revenues of $224.2 million, up 1.94% year on year, falling short of analyst expectations by 2.52%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
“The Photronics team performed well in the third quarter, maintaining strong margins in an environment where we experienced a temporary demand slowdown in some of our end markets,” said Frank Lee, chief executive officer.
The stock is down 13.8% since the results and currently trades at $20.26.
Read our full report on Photronics here, it's free.
Best Q2: Applied Materials (NASDAQ:AMAT)
Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials (NASDAQ:AMAT) is the largest provider of semiconductor wafer fabrication equipment.
Applied Materials reported revenues of $6.43 billion, down 1.46% year on year, outperforming analyst expectations by 4.29%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and optimistic revenue guidance for the next quarter.
Applied Materials scored the biggest analyst estimates beat among its peers. The stock is up 2.42% since the results and currently trades at $140.73.
Is now the time to buy Applied Materials? Access our full analysis of the earnings results here, it's free.
Weakest Q2: IPG Photonics (NASDAQ:IPGP)
Both a designer and manufacturer of its products, IPG Photonics (NASDAQ:IPGP) is a provider of high-performance fiber lasers used for cutting, welding, and processing raw materials.
IPG Photonics reported revenues of $340 million, down 9.83% year on year, falling short of analyst expectations by 1.79%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.
The stock is down 28.8% since the results and currently trades at $93.68.
Read our full analysis of IPG Photonics's results here.
Teradyne (NASDAQ:TER)
Sporting most major chip manufacturers as its customers, Teradyne (NASDAQ:TER) is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.
Teradyne reported revenues of $684.4 million, down 18.6% year on year, surpassing analyst expectations by 4%. It was a decent quarter for the company, with an impressive beat of analysts' EPS estimates but a decline in its operating margin.
The stock is down 17.7% since the results and currently trades at $94.36.
Read our full, actionable report on Teradyne here, it's free.
FormFactor (NASDAQ:FORM)
With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.
FormFactor reported revenues of $155.9 million, down 23.5% year on year, falling short of analyst expectations by 3.94%. It was a weak quarter for the company, with a miss of analysts' revenue estimates and a decline in its operating margin.
The stock is down 2.53% since the results and currently trades at $35.08.
Read our full, actionable report on FormFactor here, it's free.
Join Paid Stock Investor Research
Help us make StockStory more helpful to investors like yourself. Join our paid user research session and receive a $50 Amazon gift card for your opinions. Sign up here.
The author has no position in any of the stocks mentioned
