Photronics Slides After Q3 Earnings Miss, Demand Slowdown In Some End Markets

Photronics, Inc. PLAB reported Q3 FY23 revenue growth of 2% Y/Y to $224.21 million, missing the consensus of $230 million.

Adjusted EPS of $0.51 missed the consensus of $0.52.

Results were dismal as a temporary demand slowdown in some end markets hurt the company.

IC revenue was $163.1 million, up 1% Y/Y and down 2% sequentially (owing to softer mainstream demand).

FPD revenue was $61.1 million, up 4% from the same quarter last year and down 2% sequentially (lower LTPS and G10.5+).

Gross profit rose 3.5% to $86.80 million, with margins expanding 60 bps to 38.7%.

The company exited the quarter with $451.14 million in cash balance, $27.3 million in short-term investments, and $26.7 million in debt.

Frank Lee, CEO, commented, "The long-term photomask demand outlook remains positive, driven by several secular drivers that support robust design activity for new devices and ongoing trends to onshore semiconductor production in response to rising geopolitical risks."

Outlook: Photronics expects Q4 revenue of $222 million-$232 million (consensus: $231 million) and adjusted EPS of $0.51- $0.59 (consensus: $0.54).

Price Action: PLAB shares traded lower by 6.3% at $22.02 premarket on the last check Wednesday.