Semiconductor photomask manufacturer Photronics (NASDAQ:PLAB) will be reporting results tomorrow morning. Here's what investors should know.
Last quarter Photronics reported revenues of $211.1 million, up 11.2% year on year, beating analyst revenue expectations by 5.02%. It was a strong quarter for the company, with a significant improvement in gross margin.
Is Photronics buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Photronics's revenue to grow 3.17% year on year to $211 million, slowing down from the 28% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.44 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 3.22%.
Looking at Photronics's peers in the semiconductor manufacturing segment, some of them have already reported Q2 earnings results, giving us a hint what we can expect. FormFactor's revenues decreased 15.1% year on year, beating analyst estimates by 2.96% and Entegris reported revenues up 42% year on year, exceeding estimates by 3.33%. FormFactor traded down 1.9% on the results, Entegris was flat on the results. Read our full analysis of FormFactor's results here and Entegris's results here.
There has been positive sentiment among investors in the semiconductor manufacturing segment, with the stocks up on average 6.25% over the last month. Photronics is up 15.1% during the same time, and is heading into the earnings with analyst price target of $23, compared to share price of $17.12.
One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.
The author has no position in any of the stocks mentioned.