Photronics, Inc PLAB stock is seeing a dip in trading on Wednesday following the company’s fourth-quarter results.
While the company achieved a modest revenue growth of 2% year-on-year (Y/Y) to $216.3 million, it fell short of the consensus estimate of $220.0 million. Additionally, Photronics reported an adjusted EPS of $0.48, missing the consensus of $0.49.
The integrated circuit (IC) revenue stood at $157.6 million, up 1% Y/Y but down by 1% sequentially. On the other hand, flat panel display (FPD) revenue was $58.7 million, demonstrating an 8% increase from the same quarter last year but a 7% decline sequentially.
Despite an improvement in gross profit to $79.3 million from $76.1 million a year ago, and a margin increase from 36% to 36.5% Y/Y, the company has exited the quarter with $508.5 million in cash balance, $13.0 million in short-term investments, and $23.4 million in debt.
Photronics also recorded a first-quarter operating cash flow of $41.5 million.
Commenting on the results, Frank Lee, CEO of Photronics, noted, “Order rates improved through the quarter, continuing into the second quarter. High-end IC revenue increased sequentially and year-over-year, primarily in 22nm and 28nm nodes, as customers migrate to these nodes for improved performance and optimal cost.”
Outlook: The company anticipates second-quarter revenue in the range of $226 million to $236 million, deviating from the consensus forecast of $230 million. The adjusted EPS for the same period is projected to be between $0.50 and $0.58, while the consensus estimate is $0.56.
Photronics stock experienced significant growth of over 90% last year.
Price Action: As of the latest check on Wednesday, PLAB shares were trading 16.80% lower at $25.96.
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