The 10-second takeaway
For the quarter ended Jan. 29 (Q1), Photronics met expectations on revenues and earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped significantly.
Margins shrank across the board.
Photronics notched revenue of $112.2 million. The six analysts polled by S&P Capital IQ looked for sales of $113.4 million on the same basis. GAAP reported sales were 7.2% lower than the prior-year quarter's $120.8 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.09. The six earnings estimates compiled by S&P Capital IQ forecast $0.09 per share on the same basis. GAAP EPS of $0.07 for Q1 were 65% lower than the prior-year quarter's $0.20 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 22.7%, 260 basis points worse than the prior-year quarter. Operating margin was 8.6%, 470 basis points worse than the prior-year quarter. Net margin was 3.8%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $116.8 million. On the bottom line, the average EPS estimate is $0.12.
Next year's average estimate for revenue is $485.7 million. The average EPS estimate is $0.55.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 125 members out of 150 rating the stock outperform, and 25 members rating it underperform. Among 36 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Photronics a green thumbs-up, and seven give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Photronics is outperform, with an average price target of $8.67.
Is Photronics the best semiconductor stock for you? You may be missing something obvious. Check out the semiconductor company that Motley Fool analysts expect to lead "The Next Trillion-Dollar Revolution." Click here for instant access to this free report.
- Add Photronics to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.