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Photronics (PLAB) Q4 Earnings Miss Estimates, Revenues Drop
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Photronics, Inc. (PLAB - Free Report) reported fourth-quarter fiscal 2020 earnings of 10 cents per share, which fell short of the Zacks Consensus Estimate and the year-ago reported figure by 33.3%.
Revenues of $149.3 million also missed the consensus mark by 3.1% and declined 4% on a year-over-year basis due to lower demand across Integrated Circuit (IC) and Flat Panel Display (FPD) segments.
China revenues were down 2% year over year as FPD was down on Huawei-related disruptions.
Photronics, Inc. Price, Consensus and EPS Surprise
IC Revenues (70.9% of total revenues) amounted to $105.9 million, down 6% from the year-ago quarter’s figure due to seasonal softness and weak memory demand.
IC achieved record China revenues. Foundry, logic demand drove the increase as the region continued to be a healthy location for new design activity.
Moreover, the company’s business in China comprises a few large key customers and many smaller developing customers. They are split evenly between the IC and FPD segments, representing a diverse revenue stream.
FPD Revenues (29.1% of total revenues) decreased 1% year over year to $43.4 million, as mobile display demand was constrained by U.S. trade sanctions against Huawei.
Operating Details
Selling, general and administrative expenses increased 5.4% year over year to $12.8 million. Research and development expenses were $4.1 million, down 9.5% year over year.
Total operating profit for the quarter was $14.9 million compared with $21.4 million in the year-ago quarter.
Operating margin contracted 370 basis points (bps) year over year to 10%, driven by costs of ramping the facilities in China and increased compensation costs.
Balance Sheet & Cash Flow
As of Oct 31, 2020, the company had cash and cash equivalents of $278.6 million compared with $260.5 million as of Aug 2, 2020.
Net cash flow from operating activities was $143 million as of Oct 31, 2020 compared with $78.2 million as of Aug 2, 2020.
The company repurchased shares worth $17.5 million during the quarter.
Guidance
For the first quarter of fiscal 2021, the company expects revenues in the range of $145-$155 million.
Earnings are expected to be between 7 cents and 14 cents per share for fiscal first quarter.
Zacks Rank & Stocks to Consider
Currently, Photronics carries a Zacks Rank #3 (Hold).
The long-term earnings growth rate for Flex, Garmin and KLA Corporation is currently pegged at 10.5%, 6.8% and 11.5%, respectively.
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Photronics (PLAB) Q4 Earnings Miss Estimates, Revenues Drop
Photronics, Inc. (PLAB - Free Report) reported fourth-quarter fiscal 2020 earnings of 10 cents per share, which fell short of the Zacks Consensus Estimate and the year-ago reported figure by 33.3%.
Revenues of $149.3 million also missed the consensus mark by 3.1% and declined 4% on a year-over-year basis due to lower demand across Integrated Circuit (IC) and Flat Panel Display (FPD) segments.
China revenues were down 2% year over year as FPD was down on Huawei-related disruptions.
Photronics, Inc. Price, Consensus and EPS Surprise
Photronics, Inc. price-consensus-eps-surprise-chart | Photronics, Inc. Quote
Segment Details
IC Revenues (70.9% of total revenues) amounted to $105.9 million, down 6% from the year-ago quarter’s figure due to seasonal softness and weak memory demand.
IC achieved record China revenues. Foundry, logic demand drove the increase as the region continued to be a healthy location for new design activity.
Moreover, the company’s business in China comprises a few large key customers and many smaller developing customers. They are split evenly between the IC and FPD segments, representing a diverse revenue stream.
FPD Revenues (29.1% of total revenues) decreased 1% year over year to $43.4 million, as mobile display demand was constrained by U.S. trade sanctions against Huawei.
Operating Details
Selling, general and administrative expenses increased 5.4% year over year to $12.8 million. Research and development expenses were $4.1 million, down 9.5% year over year.
Total operating profit for the quarter was $14.9 million compared with $21.4 million in the year-ago quarter.
Operating margin contracted 370 basis points (bps) year over year to 10%, driven by costs of ramping the facilities in China and increased compensation costs.
Balance Sheet & Cash Flow
As of Oct 31, 2020, the company had cash and cash equivalents of $278.6 million compared with $260.5 million as of Aug 2, 2020.
Net cash flow from operating activities was $143 million as of Oct 31, 2020 compared with $78.2 million as of Aug 2, 2020.
The company repurchased shares worth $17.5 million during the quarter.
Guidance
For the first quarter of fiscal 2021, the company expects revenues in the range of $145-$155 million.
Earnings are expected to be between 7 cents and 14 cents per share for fiscal first quarter.
Zacks Rank & Stocks to Consider
Currently, Photronics carries a Zacks Rank #3 (Hold).
Flex Ltd. (FLEX - Free Report) , Garmin Ltd. (GRMN - Free Report) and KLA Corporation (KLAC - Free Report) are some better-ranked stocks in the broader technology sector. All the three stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
The long-term earnings growth rate for Flex, Garmin and KLA Corporation is currently pegged at 10.5%, 6.8% and 11.5%, respectively.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.4% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>