Photronics Inc. (PLAB) is having a good Wednesday. The company's stock jumped more than 18% in premarket trading after it reported fiscal third-quarter results that came in ahead of what Wall Street was expecting.
Let's get to the numbers. Photronics posted adjusted earnings of 50 cents per share, beating the analyst consensus of 40 cents. That's a slight dip from the 51 cents it earned in the same quarter last year, but the beat is what matters to investors today.
Sales rose 2.7% year over year to $216.047 million, topping the $208.840 million estimate. Revenue also grew 2.9% sequentially. On a GAAP basis, net income attributable to shareholders came in at $28.9 million, or 49 cents per diluted share, up from $22.9 million, or 39 cents per share, a year earlier.
Breaking down the revenue: integrated circuit photomask revenue rose 5% year over year and sequentially to $154.7 million. Flat-panel display photomask revenue fell 2% on both measures to $61.4 million.
If you're not familiar with photomasks, they're essentially quartz or glass plates that carry microscopic circuit images. Manufacturers use them to transfer circuit patterns onto semiconductor wafers and display substrates. It's a niche but critical part of the chipmaking process.
Looking ahead, Photronics expects fourth-quarter revenue of $207 million to $227 million. The company also forecast an operating margin of 19% to 24% and adjusted earnings of 40 cents to 56 cents per share.
The company ended the quarter with $672.8 million in cash, cash equivalents and short-term investments. That includes $503.5 million tied to joint ventures where Photronics holds a 50.01% stake. Operating activities generated $76.3 million in cash, while capital expenditures for organic growth totaled $37 million.
CEO George Macricostas said some semiconductor design releases that were delayed during the second quarter recovered in the latest period. He also noted that high factory utilization across the industry supported migration to more advanced chipmaking nodes. As a result, high-end products reached a record 44% of integrated circuit revenue.
Investments in the U.S. and South Korea are also on schedule, according to Macricostas.
Photronics shares were up 18.16% at $34.64 during premarket trading on Wednesday.
