The 10-second takeaway
For the quarter ended April 29 (Q2), Photronics met expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share increased.
Gross margin dropped, operating margin shrank, and net margin improved.
Photronics reported revenue of $117.5 million. The six analysts polled by S&P Capital IQ wanted to see revenue of $116.8 million on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $133.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.14. The six earnings estimates compiled by S&P Capital IQ forecast $0.12 per share. GAAP EPS were $0.14 for Q2 compared to -$0.30 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 25.4%, 200 basis points worse than the prior-year quarter. Operating margin was 11.3%, 460 basis points worse than the prior-year quarter. Net margin was 7.5%, 1,980 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $125.6 million. On the bottom line, the average EPS estimate is $0.16.
Next year's average estimate for revenue is $485.7 million. The average EPS estimate is $0.54.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 121 members out of 148 rating the stock outperform, and 27 members rating it underperform. Among 35 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 29 give Photronics a green thumbs-up, and six 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 $9.17.
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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.