Why Semiconductor Photomask Manufacturer Photronics' Shares Are Gaining Today

Photronics, Inc PLAB reported Q4 FY23 revenue growth of 8% Y/Y to $227.5 million, beating the consensus of $224 million.

The American semiconductor photomask manufacturer's adjusted EPS of $0.60 beat the consensus of $0.53.

IC revenue was $164.5 million, up 5% Y/Y and 1% sequentially. FPD revenue was $63.0 million, up 17% from the same quarter last year and 3% sequentially.

Gross profit rose 5.7% to $84.88 million, with margins declining 86 bps to 37.3%.

The company exited the quarter with $499.3 million in cash balance, $12.9 million in short-term investments, and $24.6 million in debt.

"We delivered our sixth consecutive year of record revenue with growth in fourth quarter amidst a prolonged industry downturn," said Frank Lee, chief executive officer. "Fourth quarter and full-year revenue increased 8% year-over-year, and fourth quarter increased 1% sequentially. Both IC and FPD increased, as demand for our design-driven products remained strong."

Outlook: Photronics expects Q1 revenue of $217 million-$225 million (consensus: $220 million) and adjusted EPS of $0.45- $0.53 (consensus: $0.49).

The stock has gained over 29% year-to-date.

Price Action: PLAB shares traded higher by 4.48% at $22.60 premarket on the last check Wednesday.

Photo Via Company