Why Photronics Shares Are Surging Today

Photronics, Inc PLAB reported second-quarter FY22 revenue growth of 28% year-on-year to $204.5 million, beating the consensus of $192.4 million.
Segments: Integrated circuit (IC) revenue grew 30% Y/Y to $145.8 million. Flat-panel display (FPD) revenue increased 23% Y/Y to $58.7 million.
Margin: The gross margin expanded by 1,140 bps to 36%.
The operating margin expanded by 1,200 bps to 25%.
EPS of $0.49 beat the consensus of $0.35.
Photronics held $332.3 million in cash and equivalents. It generated $103.3 million in operating cash flow during the six months.
"Second quarter was another excellent quarter, as strong end-market demand and higher pricing across both mainstream and high-end IC products propelled us to our fifth consecutive quarter of record revenue," CEO Frank Lee said.
Outlook: Photronics sees Q3 revenue of $205 million - $215 million, above the consensus of $196.4 million.
The company sees EPS of $0.45 - $0.55, above the consensus of $0.37.
Price Action: PLAB shares traded higher by 9.04% at $16.40 in pre-market on the last check Wednesday.

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