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What's in the Cards for Photronics' (PLAB) Q3 Earnings?
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Photronics (PLAB - Free Report) is scheduled to release third-quarter fiscal 2022 results on Aug 30.
Management expects third-quarter fiscal 2022 revenues between $205 million and $215 million. Adjusted profit per share is expected to be 45-55 cents.
The Zacks Consensus Estimate for the top line is currently pegged at $210 million, suggesting growth of 23.07% from the year-ago quarter’s reading.
The consensus mark for earnings in the fiscal third quarter has been unchanged at 50 cents per share, indicating an improvement of 127.27% from the prior-year reported figure.
PLAB’s bottom line beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 23.65%.
Photronics’ performance in the fiscal third quarter is expected to have benefited from its growth strategy to invest in technology, which drives the market megatrends and helps build strategic partnerships with customers by signing long-term purchase agreements. This is expected to have helped PLAB anticipate growing demand for its products and meet the same with adequate supply in the to-be-reported fiscal quarter.
PLAB’s third-quarter IC revenues are expected to have been driven by strong demand for photomasks, globally. High-end demand is expected to have been led by foundries in Asia and the United States as the semiconductor content in consumer goods continues to increase.
Photronics’ bottom line is also expected to have benefited from strong demand for semiconductors in high-growth margin industries like automotive and electronic appliances. Advances in the communication industry, such as the rollout of 5G, are also one of the key reasons as demand for PLAB’s photomasks is expected to have grown in the fiscal third quarter.
Rising demand for AMOLED displays owing to their increasing necessity in the smartphone market might have aided the to-be-reported fiscal quarter’s performance. The escalating requirement for AMOLED displays is likely to have contributed to flat panel display business growth.
However, persistent supply-chain constraints due to lockdowns in China are expected to have negatively impacted the FPD photomask market. This downside might reflect on Photronics’ top line in the to-be-reported results. PLAB’s dependence on the Chinese market for a significant portion of its profits amid the rising economic volatility and intensifying geopolitical tensions might have weighed on its performance in the fiscal third quarter.
What Our Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Photronics this time around. 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. However, that is not the case here as elaborated below.
PLAB has a Zacks Rank #3 and an Earnings ESP of 0.00%. 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 stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.
Image: Bigstock
What's in the Cards for Photronics' (PLAB) Q3 Earnings?
Photronics (PLAB - Free Report) is scheduled to release third-quarter fiscal 2022 results on Aug 30.
Management expects third-quarter fiscal 2022 revenues between $205 million and $215 million. Adjusted profit per share is expected to be 45-55 cents.
The Zacks Consensus Estimate for the top line is currently pegged at $210 million, suggesting growth of 23.07% from the year-ago quarter’s reading.
The consensus mark for earnings in the fiscal third quarter has been unchanged at 50 cents per share, indicating an improvement of 127.27% from the prior-year reported figure.
PLAB’s bottom line beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 23.65%.
Photronics, Inc. Price and EPS Surprise
Photronics, Inc. price-eps-surprise | Photronics, Inc. Quote
Factors to Note
Photronics’ performance in the fiscal third quarter is expected to have benefited from its growth strategy to invest in technology, which drives the market megatrends and helps build strategic partnerships with customers by signing long-term purchase agreements. This is expected to have helped PLAB anticipate growing demand for its products and meet the same with adequate supply in the to-be-reported fiscal quarter.
PLAB’s third-quarter IC revenues are expected to have been driven by strong demand for photomasks, globally. High-end demand is expected to have been led by foundries in Asia and the United States as the semiconductor content in consumer goods continues to increase.
Photronics’ bottom line is also expected to have benefited from strong demand for semiconductors in high-growth margin industries like automotive and electronic appliances. Advances in the communication industry, such as the rollout of 5G, are also one of the key reasons as demand for PLAB’s photomasks is expected to have grown in the fiscal third quarter.
Rising demand for AMOLED displays owing to their increasing necessity in the smartphone market might have aided the to-be-reported fiscal quarter’s performance. The escalating requirement for AMOLED displays is likely to have contributed to flat panel display business growth.
However, persistent supply-chain constraints due to lockdowns in China are expected to have negatively impacted the FPD photomask market. This downside might reflect on Photronics’ top line in the to-be-reported results. PLAB’s dependence on the Chinese market for a significant portion of its profits amid the rising economic volatility and intensifying geopolitical tensions might have weighed on its performance in the fiscal third quarter.
What Our Model Indicates
Our proven model doesn’t conclusively predict an earnings beat for Photronics this time around. 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. However, that is not the case here as elaborated below.
PLAB has a Zacks Rank #3 and an Earnings ESP of 0.00%. 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 stocks worth considering as our model shows that these have the right combination of elements to beat on earnings this season.
BrownForman (BF.B - Free Report) has an Earnings ESP of +5.03% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
BrownForman’s shares have increased 6.2% in the year-to-date period compared against the Zacks Beverages – Alcohol industry’s decline of 21%.
Campbell Soup (CPB - Free Report) has an Earnings ESP of +0.60% and a Zacks Rank #2 at present.
Shares of CPB have increased 18.6% in the year-to-date period compared with the Zacks Food - Miscellaneous industry’s rise of 2%.
JOYY (YY - Free Report) has an Earnings ESP of +2.56% and a Zacks Rank of 2 at present.
The stock has dropped 35.1% in the year-to-date period compared with the Zacks Internet - Services industry’s decline of 24.5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.