Photronics Shares Trade Lower After Sharing Cautious Q2 Outlook

• Photronics, Inc (NASDAQ: PLAB) reported first-quarter revenue growth of 11% year-on-year to $211.1 million, beating the consensus of $201 million.

• IC revenue was $156.6 million, up 21% Y/Y. FPD revenue was $54.5 million, down 9% Y/Y.

• Adjusted EPS of $0.40 was in-line with the consensus.

• “We made a great start to 2023 and grew revenue sequentially, as both IC and FPD high-end businesses improved due to ongoing design-driven demand,” CEO Frank Lee said. “IC growth was driven by high-end demand from Asian foundries; FPD benefited from increased G10.5+ demand and continued strength in mobile displays.”

• “Profit margins were somewhat softer than the previous quarter primarily due to less favorable mix and somewhat lower customer premiums to accelerate delivery,” added Lee.

• Outlook: Photronics expects Q2 revenue of $205 million – $215 million (consensus $214 million) and EPS of $0.38 – $0.48 (consensus $0.47).

• Price Action: PLAB shares traded lower by 11.15% at $16.01 on the last check Tuesday.

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This article Photronics Shares Trade Lower After Sharing Cautious Q2 Outlook originally appeared on Benzinga.com

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