Zinger Key Points
- Photronics reports Q2 earnings miss with adjusted EPS of 46 cents and revenues of $217M, down 5% YoY.
- CEO highlights slower recovery in order rates post Lunar New Year and Taiwan earthquakes impacting production, causing $3M revenue impact.
- Get Monthly Picks of Market's Fastest Movers
Photronics, Inc. PLAB shares are trading lower on Wednesday.
The company reported second-quarter adjusted earnings per share of 46 cents, missing the Wall Street view of 55 cents.
Photronics reported quarterly revenues of $217.0 million, down 5% year-over-year. Sales missed the analyst consensus of $231 million.
“Order rates, which typically pause during Lunar New Year, have recovered at a slower rate than we typically observe,” flagged Frank Lee, chief executive officer.
IC revenue was $160.9 million, down 4% year-over-year. FPD revenue was $56.1 million, down 10% from the same quarter last year.
“In addition, the recent earthquakes in Taiwan caused a loss of production across both IC and FPD, resulting in an approximately $3 million revenue impact,” Lee added.
Photronics said that cash generated from operating activities was $76.5 million in the quarter under review, and cash invested in organic growth through capital expenditures was $20.0 million.
The company’s cash balance at the end of the quarter was $539.2 million, with $20.7 million in short-term investments and $21.8 million in debt.
Outlook: For the third quarter, Photronics expects revenue to be between $221 million and $229 million (estimate: $240 million).
The company expects adjusted earnings per share between $0.53 and $0.59 (estimate: $0.58).
Price Action: PLAB shares are trading lower by 9.24% to $25.65 at last check Wednesday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
