Semiconductor equipment supplier Photronics on Tuesday beat Wall Street's targets for its fiscal third quarter. But its guidance for the current quarter came up short. PLAB stock plunged on the news.
The Brookfield, Conn.-based company earned 51 cents a share on sales of $219.9 million in the quarter ended July 31. Analysts polled by FactSet expected Photronics earnings of 50 cents a share on sales of $210 million. On a year-over-year basis, Photronics earnings jumped 82% while sales increased 29%.
For the current quarter, Photronics forecast earnings of 48 cents a share on sales of $210 million. That's based on the midpoint of its outlook. Wall Street had predicted Photronics earnings of 53 cents a share on sales of $214.5 million for the fiscal fourth quarter.
"We achieved our sixth consecutive quarter of record revenue due to strong end market demand, favorable pricing dynamics, and outstanding performance by the entire organization," Chief Executive Frank Lee said in a news release.
He added, "We are expanding capacity and growing volumes while controlling costs and capitalizing on operating leverage to deliver higher margins."
PLAB Stock Sinks After Report
On the stock market today, PLAB stock plummeted 23.6% to close at 16.64. During the regular session Monday, PLAB stock slid 1.9% to close at 21.77.
On July 27, PLAB stock broke out of a seven-week consolidation pattern at a buy point of 23.14, according to IBD MarketSmith charts. It climbed as high as 25.81 before retreating. On Monday, PLAB stock triggered a stop-loss sell rule amid the market downturn.
Photronics is the world's largest merchant photomask manufacturer. Photomasks are high-precision quartz plates that contain microscopic images of electronic circuits. They are used to make integrated circuits and flat-panel displays.
Photronics Ranks First In Group
Photronics is counting on a sales boost from China's domestic semiconductor manufacturing plans.
PLAB stock is tied for first place in IBD's semiconductor equipment industry group, according to IBD Stock Checkup. It has an IBD Composite Rating of 98 out of 99. IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Also, PLAB stock is on IBD's Tech Leaders list.
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