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Photronics (PLAB) to Post Q2 Earnings: What's in the Offing?

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Photronics (PLAB - Free Report) is set to report its second-quarter fiscal 2024 results on May 22.

For the to-be-reported quarter, PLAB expects revenues between $226 million and $236 million. Non-GAAP earnings are expected to be between 50 cents and 58 cents.

The Zacks Consensus Estimate for earnings is pegged at 55 cents, unchanged in the past 30 days and indicating 1.85% year-over-year growth.

The company’s earnings beat the Zacks Consensus Estimate in two of the trailing four quarters while missing the same on two occasions, the average surprise being 8%.

Photronics, Inc. Price and EPS Surprise

 

Photronics, Inc. Price and EPS Surprise

Photronics, Inc. price-eps-surprise | Photronics, Inc. Quote

 

Let’s see how things have shaped up before this announcement.

Factors Likely to Influence Q2 Results

Photronics' second-quarter 2024 results are expected to have benefited in the Integrated Circuit (IC) and Flat Panel Display (FPD) segments. 

The IC segment is experiencing an increasing number of customers in Asia migrating to more advanced technology nodes, such as 28 and 22 nanometres. This upside is likely to have driven the demand for high-end photomasks in the to-be-reported quarter. 

In the FPD segment, the increasing usage of AMOLED displays for mobile applications is expected to have aided top-line growth.  

The demand for display masks is expected to have remained high as panel makers introduced new advancements to attract customers for premium smartphones. 

The memory market is also experiencing a recovery in demand, particularly from Tier 2 providers involved in high-value applications. This recovery is expected to have boosted Photronics memory photomask business in the second quarter.

Gross margin is expected to have benefited from strong demand for both high-end IC and FPD products. For the second quarter, gross margin is expected to be around 38%, up from 36.6% in the first quarter.

What Our Model Indicates

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Photronics has an Earnings ESP of 0.00% and a Zacks Rank #3 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases: 

NVIDIA (NVDA - Free Report) has an Earnings ESP of +3.62% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here

NVIDIA’s shares have surged 86.8% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.  

Snowflake (SNOW - Free Report) has an Earnings ESP of +6.25% and a Zacks Rank #2 at present.

Snowflake’s shares have declined 18.7% year to date. SNOW is set to report first-quarter fiscal 2025 results on May 22.

Agilent Technologies (A - Free Report) has an Earnings ESP of +0.42% and a Zacks Rank #3.  

Agilent Technologies has inched up 11% year to date. A is set to report its second-quarter fiscal 2024 results on May 29.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


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