Photronics (NASDAQ:PLAB) shares jump after topping estimates in FQ2 on Wednesday and guiding FQ3 earnings above consensus.
For FQ3, the company sees revenue in the range of $205M and $215M vs. consensus of $204M and diluted EPS of $0.45 and $0.55 vs. consensus of $0.45.
Revenue for the quarter grew 28% Y/Y and 8% Q/Q.
Integrated circuit revenue up 12% sequentially and 30% Y/Y to $145.8M.
Lee said, “As I begin my tenure as CEO, Photronics is in a very strong place with a strong global team, leading technology, quality products, and growing market share. We expect to continue to grow sequentially throughout 2022. In fact, market dynamics and Photronics execution have again driven profitability levels that propelled the Company well beyond the projections in the target model we provided just last quarter.” Lee concluded, “Significant indicators from the market and other market participants are that these conditions will continue well into the future. We have therefore included an updated target model in the supplemental information issued in connection with our conference call later today.”
Northland analyst Gus Richard raised the PT on the stock to $26 from $25 and maintains an Outperform rating, increased his estimate “significantly” following the company’s “strong’ Q1 report.
Merchant IC Mask capacity being totally full has led to more long-term purchase agreements, higher prices, and better gross margins for the company, which Richard would not be surprised to see buy back stock given the current valuation, he tells investors.
D.A. Davidson raised its price target on the stock to $30 from $26 following Q1 results and maintains a buy rating on the stock. Analyst says, “The results show “a solid demand environment and favorable end market demand trends.”
The stock has outperformed the broader market index and hence, attracts a Strong Buy rating at SA quant rating system.
Read More: Photronics stock gains on guiding FQ3 above consensus after FQ2 beat (NASDAQ:PLAB)