Photronics Stock Gains On Q1 Beat, Solid Q2 Outlook

Photronics Inc PLAB reported first-quarter FY22 revenue growth of 25% year-on-year to $189.8 million, beating the consensus of $183.1 million.
Segments: Integrated circuit (IC) revenue grew 24% Y/Y to $129.8 million. Flat-panel display (FPD) revenue increased 27% Y/Y to $60.1 million.
Margin: The gross margin expanded by 1,146 bps to 31.5%.
EPS of $0.38 beat the consensus of $0.31.
Photronics held $314.2 million in cash and equivalents and generated $59.1 million in operating cash flow.
"Strong end-market demand trends have continued into 2022, helping us achieve our fourth consecutive quarter of record revenue," said Peter Kirlin, CEO. "Our investment strategy is producing the intended results as demonstrated by growth in excess of market rates."
Outlook: Photronics sees Q2 FY22 revenue of $188 million - $196 million, above the consensus of $185.6 million.
The company sees EPS of $0.32 - $0.38 versus the consensus of $0.32.
Price Action: PLAB shares traded higher by 8.29% at $20.11 in pre-market on the last check Wednesday.

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