Latest news with #Photronics
Yahoo
2 days ago
- Business
- Yahoo
Photronics Receives Outstanding Contribution Award from Visionox
BROOKFIELD, Conn., June 19, 2025 (GLOBE NEWSWIRE) -- Photronics, Inc. (Nasdaq: PLAB), a worldwide leader in photomask technologies and solutions, received the Outstanding Contribution award from Visionox at its recent supply chain seminar. The Outstanding Contribution award is the highest level of achievement awarded by Visionox and demonstrates Photronics dedication to customer excellence. 'Visionox is a long-standing Flat Panel Display customer of Photronics,' said HK Park, General Manager FPD Asia. 'This award from Visionox demonstrates the premier economic value and customer support we provide in terms of delivery, quality and local service support. We are proud to once again be recognized by Visionox for our outstanding execution.' About Photronics Photronics is a leading worldwide manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks. High precision quartz plates that contain microscopic images of electronic circuits, photomasks are a key element in the IC and FPD manufacturing process. Founded in 1969, Photronics has been a trusted photomask supplier for over 56 years. The company operates 11 strategically located manufacturing facilities in Asia, Europe, and North America. Additional information can be accessed at For Further Information:Ted MoreauVP, Investor Relations469.395.8175tmoreau@
Yahoo
09-06-2025
- Business
- Yahoo
Photronics, Inc. (PLAB): A Bull Case Theory
We came across a bullish thesis on Photronics, Inc. (PLAB) on Enterprising Investor's Substack by Tyler Moody. In this article, we will summarize the bulls' thesis on PLAB. Photronics, Inc. (PLAB)'s share was trading at $18.11 as of 6th June. PLAB's trailing P/E was 9.38 according to Yahoo Finance. A close-up of a semiconductor component, highlighting its complex design. Photronics (PLAB) appears to be an overlooked semiconductor name trading at a compelling valuation, particularly on a free cash flow basis. The company, which manufactures photolithography masks essential to integrated circuit and flat panel display production, is down nearly 50% from early 2024 highs and 24% year-to-date, now trading at a $1.14B market cap. With 11 manufacturing sites globally and 85% of sales coming from outside the U.S.—notably 33% from Taiwan and 25% from China—PLAB is a global player with geographic risk exposure. Much of the recent investor pessimism stems from its China exposure amid trade tensions, and from the nature of mask demand itself, which depends on new chip designs rather than chip volume. Slower product rollouts have thus dampened near-term growth, and weak demand in auto and industrial end markets hasn't helped. However, the emerging wave of AI-enabled chips could fuel a surge in new designs, providing a tailwind for PLAB over the next year. Photronics has been strategically shifting toward higher-end masks with better margins, and despite recent cyclical weakness, it remains fundamentally solid. It has $558M in cash and no debt, which supports resilience through industry downturns. Over the last three years, PLAB averaged $154M in free cash flow, putting its FCF multiple at just 7.4x—an attractive level for value-focused investors. While it doesn't pay a dividend, it has actively repurchased shares, buying back $77M worth over the past year. Though uncertainties remain, the setup suggests a classic cyclical value opportunity with upside potential as demand normalizes. Previously, we covered a on Monro (MNRO) by the same author, highlighting its depressed valuation, high yield, and potential for recovery despite ongoing consumer weakness. With an 8.75% dividend yield, low debt, and cheap FCF and book multiples, Monro's stock since then has appreciated by approximately 28%. Photronics (PLAB) presents a similarly contrarian setup: a debt-free, cash-rich semiconductor supplier trading at 7.4x FCF, positioned to benefit from a rebound in AI-driven chip design. Both offer value upside, but with different risk-reward profiles. Photronics, Inc. (PLAB) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 25 hedge fund portfolios held PLAB at the end of the first quarter which was 23 in the previous quarter. While we acknowledge the risk and potential of PLAB as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 8 Best Wide Moat Stocks to Buy Now and 30 Most Important AI Stocks According to BlackRock. Disclosure: None. This article was originally published at Insider Monkey. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
29-05-2025
- Business
- Yahoo
Photronics Inc (PLAB) Q2 2025 Earnings Call Highlights: Navigating Market Challenges with ...
Revenue: $211 million, flat sequentially, down 3% year over year. IC Revenue: $156 million, declined 3% year over year. High-End Revenue: Increased 2% year over year, representing 30% of IC revenue. Mainstream IC Revenue: Declined 6% year over year. FPD Revenue: $55 million, declined 2% year over year. Gross Margin: 37%, in line with quarterly average over the past three years. Operating Margin: 26%, improved 180 basis points sequentially. Non-GAAP Diluted EPS: $0.40. GAAP Diluted EPS: $0.15 per share. Operating Cash Flow: $31 million, representing 15% of total revenue. CapEx: $61 million in the quarter, with a plan to spend $200 million in fiscal 2025. Total Cash and Short-Term Investments: $558 million at the end of the quarter. Share Repurchase: $72 million spent to repurchase 3.6 million shares. Q3 Revenue Guidance: $200 million to $208 million. Q3 Non-GAAP EPS Guidance: $0.35 to $0.41 per diluted share. Q3 Operating Margin Guidance: 20% to 22%. Warning! GuruFocus has detected 6 Warning Signs with BMO. Release Date: May 28, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Photronics Inc (NASDAQ:PLAB) achieved second-quarter sales of $211 million, which was in the middle of their guidance range. The company repurchased 3.6 million shares for $72 million, which is expected to drive greater earnings leverage in the future. Photronics Inc (NASDAQ:PLAB) is well-positioned to benefit from the market transition towards higher-end nodes, particularly in Asia. The company operates 11 cleanroom production facilities globally, allowing for rapid response and collaboration with customers. Photronics Inc (NASDAQ:PLAB) reported a gross margin of 37%, which is in line with their quarterly average over the past three years and above historical levels. Second-quarter revenue was essentially flat sequentially and down 3% year over year. Mainstream IC revenue declined 6% year over year, with significant weakness in photomasks serving older generation design nodes. Revenue from memory applications declined sequentially due to the timing of projects. US revenue declined sequentially due to lower-end design node weakness and the timing of customer advanced node projects. The company remains cautious about the near-term demand environment due to market conditions and tariff uncertainty. Q: Can you provide more color on the mainstream business and its impact on margins and capital spending plans? A: Frank Lee, CEO, explained that the mainstream market remains weak due to low wafer fab utilization, particularly in power, industrial, and consumer sectors. The focus is on building capacity in high-end and high-end mainstream segments. Christopher Progler, CTO, added that while there is some capacity increase due to end-of-life tool replacements, the supply-demand balance is not overly unfavorable. The weakness is broad-based, not confined to Asia, and recovery is expected later in 2026. Q: Are you seeing more weakness in Asia, and how does this affect your capital spending in the US? A: Christopher Progler, CTO, noted that the weakness in mainstream is broad-based, not just in Asia. The US projects focus on node migration to higher-end mainstream applications, which is a growing market segment. This strategic investment aligns with the regionalization of high-end chip makers. Q: What is the largest impact on earnings year-over-year, given similar revenue levels? A: Eric Rivera, CFO, mentioned that while there is pricing pressure, the focus is on product mix and higher-end mainstream node migration. Frank Lee, CEO, added that long-term agreements with main customers provide stable pricing and order guarantees. Q: What are your priorities regarding US capacity expansion versus growth in Asia? A: George Macricostas, Executive Chairman, stated that opportunities in the US, driven by reshoring and geopolitical issues, will be evaluated for capital deployment. The focus is on expanding US capacity and investing in high-end capabilities while balancing regional growth. Q: How do you prioritize share repurchases given weaker earnings, and will you expand the buyback program? A: Eric Rivera, CFO, explained that $23 million remains under the existing authorization, and they will be opportunistic with it. Share repurchases are part of the capital allocation strategy, balanced against other investment opportunities for long-term growth. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
PLAB Q1 Earnings Call: Revenue Miss and CEO Transition Amid Industry Uncertainty
Semiconductor photomask manufacturer Photronics (NASDAQ:PLAB) missed Wall Street's revenue expectations in Q1 CY2025, with sales falling 2.8% year on year to $211 million. Its non-GAAP EPS of $0.40 per share was 16.7% below analysts' consensus estimates. Is now the time to buy PLAB? Find out in our full research report (it's free). Revenue: $211 million (2.8% year-on-year decline) Adjusted EPS: $0.40 vs analyst expectations of $0.48 (16.7% miss) Revenue Guidance for Q2 CY2025 is $204 million at the midpoint, below analyst estimates of $220 million Adjusted EPS guidance for Q2 CY2025 is $0.38 at the midpoint Operating Margin: 26.4%, in line with the same quarter last year Inventory Days Outstanding: 42, up from 38 in the previous quarter Market Capitalization: $1.28 billion Photronics' first quarter results were shaped by continued softness in demand for mainstream photomasks and the impact of customer wafer fab utilization, particularly in segments tied to power, industrial, and consumer applications. Management attributed the performance to a combination of muted demand in older-generation nodes and a shift in product mix, emphasizing the need to focus on higher-end photomask offerings. CEO Frank Lee noted, 'The mainstream market still remains weak, mainly because a lot of our age fab customers still have very low wafer fab utilization.' The quarter also saw stability in gross margins, supported by long-term agreements with major customers that provided pricing stability despite broader market headwinds. Looking ahead, management emphasized caution due to ongoing macroeconomic uncertainty, especially related to tariffs and subdued demand visibility. Outgoing CEO Frank Lee and newly appointed CEO George Makrokostas highlighted that near-term growth will be challenged by customer hesitancy and the timing of advanced node projects, with the outlook for recovery pushed further into next year. CFO Eric Rivera said, 'We are seeing customers feeling the uncertainty that's reflected in the market... the current tariff environment is creating that uncertainty.' The company's capital allocation will remain balanced between capacity investments and share repurchases, with an ongoing focus on expanding high-end capabilities and responding to regional shifts in semiconductor manufacturing. Management pointed to weak mainstream demand, ongoing node migration, and a major leadership transition as key themes influencing the quarter and near-term outlook. Mainstream segment softness: Demand for photomasks in legacy nodes declined as wafer fab customers operated at low utilization rates, particularly in power and industrial end markets. Management described this as a broad-based trend rather than one isolated to Asia or new market entrants. High-end node migration: The company continued to see customer designs move toward higher-end nodes, which require more complex and higher-value photomasks. This trend was especially evident in the United States and Asia, where capacity expansion is being targeted. Leadership transition: Frank Lee announced his retirement as CEO after three years, with Chairman George Makrokostas stepping into the role. Makrokostas emphasized continuity and a dual focus on operational discipline and market share growth. Capital allocation priorities: Photronics repurchased $72 million in shares during the quarter, demonstrating a commitment to shareholder returns while also investing in capacity and technology upgrades, particularly in the U.S. to support reshoring initiatives. Tariff and macroeconomic impacts: The ongoing tariff environment and global macro uncertainty were cited as reasons for cautious near-term guidance, with management noting the company's diversified manufacturing footprint as a tool to mitigate supply chain and cost risks. Management's outlook centers on cautious demand expectations, with future performance driven by advanced node adoption, regional manufacturing shifts, and ongoing supply-demand imbalances. Demand uncertainty persists: Management flagged continued hesitancy among customers due to tariffs and macroeconomic uncertainty, resulting in reduced visibility and shorter order backlogs. This environment is expected to weigh on revenue until industry conditions stabilize. Strategic capacity investments: The company is prioritizing capital expenditures for high-end node capabilities in the U.S. and Asia, aiming to capture growth tied to advanced semiconductor applications, including those supporting AI ecosystems. This focus reflects a shift away from legacy nodes toward higher-value segments. Market share and cost discipline: Newly appointed CEO George Makrokostas stated his intention to balance cost containment with efforts to grow market share, especially given the finite size of the photomask market and the need to respond to competitive and regional shifts in the industry. In the upcoming quarters, our analysts will monitor (1) the pace and impact of high-end node adoption across regional markets, (2) progress on U.S. capacity expansions and the effectiveness of these investments in capturing reshoring-related demand, and (3) stabilization or recovery in mainstream mask utilization rates. Developments in tariff negotiations and broader semiconductor industry demand will also be important signals for Photronics' outlook. Photronics currently trades at a forward P/E ratio of 9.7×. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free). The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025. While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025). Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-small-cap company Comfort Systems (+782% five-year return). Find your next big winner with StockStory today. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
28-05-2025
- Business
- Yahoo
Why Photronics (PLAB) Shares Are Plunging Today
Shares of semiconductor photomask manufacturer Photronics (NASDAQ:PLAB) fell 13.2% in the morning session after the company reported weak first-quarter 2025 (fiscal Q2) results: Its revenue guidance for the next quarter missed, and its EPS fell short of Wall Street's estimates. The slowdown showed up in both key areas like chip and display masks, which dragged revenue down 3% from the previous year. Margins slipped a bit too, as lower factory usage and higher costs cut into gross profits. That hit the bottom line: EPS dropped and fell short of expectations. Looking ahead, the company expected revenue and profits to dip again, which won't do much to ease investor concerns. Overall, this quarter could have been better. Separately, Photronics announced a leadership change, with George Macricostas stepping in as CEO after Frank Lee stepped down. The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Photronics? Access our full analysis report here, it's free. Photronics's shares are quite volatile and have had 15 moves greater than 5% over the last year. But moves this big are rare even for Photronics and indicate this news significantly impacted the market's perception of the business. The biggest move we wrote about over the last year was 6 months ago when the stock gained 20.3% on the news that the company reported strong third-quarter results, which blew past analysts' EPS expectations, driven by revenue and profit outperformance vs Wall Street's estimates. The results marked a sharp rebound from the slower growth in the previous quarter. Revenue rose sequentially in the fourth quarter, fueled by stronger sales of Integrated Circuits (ICs) and Flat Panel Displays (FPDs). Notably, IC sales surged in the United States, while demand for FPDs showed steady growth across multiple regions. Guidance was also solid, with next quarter's revenue outlook ahead of expectations while EPS was in line, suggesting the improved trend will continue. Overall, we think this was a good quarter, especially considering some of the uneven recent earnings performance across the sector. Photronics is down 27.2% since the beginning of the year, and at $17.48 per share, it is trading 37.7% below its 52-week high of $28.06 from December 2024. Investors who bought $1,000 worth of Photronics's shares 5 years ago would now be looking at an investment worth $1,528. Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we've identified a relatively under-the-radar profitable growth stock benefiting from the rise of AI, available to you FREE via this link.
