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Photronics (PLAB) to Report Q3 Earnings: What's in Store?

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Photronics (PLAB - Free Report) is set to report third-quarter fiscal 2021 results on Aug 25.

Photronics expects third-quarter revenues between $162 million and $172 million. The Zacks Consensus Estimate for revenues is currently pegged at $168.5 million, which suggests growth of 6.7% from the year-ago quarter’s reported figure.

For the quarter under review, the Zacks Consensus Estimate for earnings has been steady at 22 cents per share in the past 30 days, which indicates growth of 29.4% from the figure reported in the year-ago quarter.  

In the last four quarters, Photronics has beaten the Zacks Consensus Estimate twice, while missing and beating the same once each, delivering a negative earnings surprise of 0.46%, on average.
 

Photronics, Inc. Price and EPS Surprise

Photronics, Inc. Price and EPS Surprise

Photronics, Inc. price-eps-surprise | Photronics, Inc. Quote

 

Let’s see how things have shaped up for Photronics prior to this announcement.

Factors to Note

Photronics’ fiscal third-quarter performance is expected to have benefited from strong end-market demand for its FPD or flat-panel display and integrated-circuit (IC) photomasks. Robust semiconductor and display businesses are anticipated to have aided top-line growth.

The company’s growing panel capacity in China has been a tailwind. This, along with Photronics’ domain expertise in mask technology, is expected to have driven market share, thereby driving top-line growth.

Photronics’ self-maintenance strategy has allowed the company to optimize spending on service contracts. This lowers total costs and improves uptime, thereby improving efficiency. This is expected to have aided in driving margin expansion in the to-be-reported quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Photronics has an Earnings ESP of 0.00% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as per our model, these have the right combination of elements to beat on earnings this reporting cycle:

Autodesk (ADSK - Free Report) has an Earnings ESP of +2.11% and a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.

HP (HPQ - Free Report) has an Earnings ESP of +1.00% and is #3 Ranked.

Workday (WDAY - Free Report) has an Earnings ESP of +3.08% and a Zacks Rank #3.


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Photronics, Inc. (PLAB) - free report >>

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