Semiconductor photomask manufacturer Photronics (NASDAQ: PLAB) will be reporting results this Wednesday before market hours. Here’s what to expect.
Photronics missed analysts’ revenue expectations last quarter, reporting revenues of $209.9 million, flat year on year. It was a disappointing quarter for the company, with revenue guidance for next quarter missing analysts’ expectations significantly and a significant miss of analysts’ operating income estimates.
Is Photronics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Photronics’s revenue to be flat year on year, in line with its flat revenue from the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Photronics has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Photronics’s peers in the semiconductor manufacturing segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Kulicke and Soffa delivered year-on-year revenue growth of 123%, beating analysts’ expectations by 5.7%, and FormFactor reported revenues up 31.9%, topping estimates by 7.6%. Kulicke and Soffa traded down 3.4% following the results while FormFactor was up 26.3%.
Read our full analysis of Kulicke and Soffa’s results here and FormFactor’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the semiconductor manufacturing stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 4.3% on average over the last month. Photronics’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $42.33 (compared to the current share price of $29.69).
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