PLAB - Photronics stock slumps 23% on revenue outlook despite FQ3 beat

Photronics ( NASDAQ: PLAB ) stock fell ~23% on Aug. 30 after the company revealed its FQ4 revenue outlook.

FQ3 revenue grew +28.89% to ~$219.95M, beating analysts estimates of $210M.

Revenue from Integrated Circuit increased +37% Y/Y to $161.3M, while Flat panel display revenue grew +11% Y/Y to $58.7M.

"We achieved our sixth consecutive quarter of record revenue due to strong end market demand, favorable pricing dynamics, and outstanding performance by the entire organization," said CEO Frank Lee.

Net income attributable to Photronics shareholders increased  +82.89% Y/Y to $31.23M.

Cash balance increased to $381M.

Outlook :

"Before I provide guidance, I’ll remind you that our visibility is always limited as our backlog is typically one to three weeks and demand for some of our products is inherently uneven and difficult to predict. Additionally, the ASPS for high end masks sets are high and as this segment of the business grows a relatively lower number of high end orders, can have a significant impact on our quarterly revenue and earnings," said John Jordan, executive vice president and CFO on the FQ3 earnings call .

For Q4, Photronics expects revenue to be between $205M and $215M, compared to consensus revenue estimate of $214.53M.

"At the midpoint, this represents an increase of 16% over last year’s Q4 revenue and for the full fiscal year 2022 an increase of 24% over full year fiscal 2021 revenue, in line with our expectations somewhat tempered by economic uncertainty, the effects of foreign currency, and typical Q4 seasonality," added Jordan.

The company expects net income attributable to Photronics, shareholders to be in the range of $0.44 to $0.52 per share.

For further details see: