Photronics Q4 Earnings: Beats Expectations, CEO Credits Strong US Sales, 2025 Backed By AI, Edge Computing, And Supply Chain Trends

Photronics, Inc PLAB stock gained Wednesday after fourth-quarter print.

The company reported adjusted EPS of 59 cents, beating the Wall Street view of 52 cents. 

Photronics reported quarterly revenues of $222.63 million, down 2% year-over-year. Sales beat the analyst consensus of $218.00 million. The revenue grew by 6% Q/Q.

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Integrated Circuits (IC) revenue was $163.7 million, down 1% year-over-year. The revenue grew by 5% Q/Q. Flat Panel Displays (FPD) revenue was $58.9 million, down 7% from the same quarter last year. The revenue grew by 7% Q/Q.

Photronics said operating cash flow was $68.4 million in the quarter under review, and cash invested in organic growth through capital expenditures was $43.2 million.

The company's cash and short-term investments balance at the end of the quarter was $640.7 million, with $18.0 million in debt.

CEO Frank Lee credited the sequential revenue growth to higher sales in both IC and FPD. IC growth was driven by strong high-end sales, particularly in the U.S., while FPD was led by mainstream demand, he noted. Photomask demand trends will continue into 2025, driven by megatrends such as AI, supply chain regionalization, and edge computing, Lee added.

Outlook: For the first quarter, Photronics expects revenue of $208 million – $216 million (estimate: $210 million). The company expects adjusted EPS of $0.43 – $0.49 (estimate: $0.46).

Photronics stock plunged 18% year-to-date as the company failed to meet the revenue and EPS consensus estimates in the last three successive quarters. Market softness in some segments affected photomask demand. Additionally, broader customer focus on rising semiconductor channel inventory limited chip design activity.

Price Action: PLAB stock is up 9.79% to $27.80 premarket at last check Wednesday. 

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