Photronics Shares Pop On Q4 Beat, Robust Q1 Outlook

Photronics Inc PLAB reported fourth-quarter FY21 revenue growth of 21% year-on-year to $181.3 million, beating the consensus of $175 million.

• Segments: Integrated circuit (IC) revenue grew 18% Y/Y to $125.4 million. Flat-panel display (FPD) revenue increased 29% Y/Y to $55.8 million.
• Margin: The gross margin expanded 729 bps to 28.7%.
• EPS of $0.33 beat the consensus of $0.25.
• Photronics held $276.7 million in cash and equivalents.
• "Photronics achieved a fourth consecutive year of record revenue, as demand for our design-driven products accelerated and we fully ramped new flat panel display capacity," said CEO Peter Kirlin. "We made strategic investments in 2021 that have positioned us to achieve organic growth as market trends such as the increase in demand from Asia foundries and the adoption of advanced display technologies in mobile applications have driven the market higher."
• Outlook: Photronics sees Q1 FY22 revenue of $178 million - $186 million, above the consensus of $170.7 million.
• The company sees EPS of $0.27 - $0.34, above the consensus of $0.22.
• Price Action: PLAB shares traded higher by 6.89% at $15.2 in the premarket session on the last check Wednesday.