Photomask technologies and solutions company Photronics (PLAB) delivered better-than-expected fiscal third-quarter results for the period ended August 1, 2021. Revenue and earnings came in above consensus estimates as the company benefited from strong demand trends.
Revenue grew 8% year-over-year in fiscal Q3 to a record $170.6 million, beating consensus estimates of $168.33 million. Additionally, net income attributed to shareholders landed at $17.1 million or $0.28 a share, surpassing consensus estimates of $0.22 a share. (See Photronics stock charts on TipRanks)
During the quarter, design activity was strong, allowing Photronics to expand its global manufacturing presence with the addition of new tools. Amid production increases, the company also strived to keep its costs under control in a bid to bolster the bottom line.
According to CEO Peter Kirlin, a strong balance sheet made it possible to invest in organic growth and return cash to shareholders through buybacks. Notably, repurchases in the quarter totaled $12.5 million, and the company ended the quarter with a cash balance of $283.2 million.
Kirlin stated, “As the leading merchant photomask manufacturer, we expect our business to continue to grow throughout the balance of this year, and remain on track to deliver on our long-term target model objectives.”
For the fiscal fourth quarter, Photronics is projecting revenue of between $171 million and $179 million versus consensus estimates of $174 million. Additionally, net income attributable to shareholders is expected to be between $0.21 and $0.29 a share, with analysts’ expectations of $0.25.
In May, Northland Securities analyst Gus Richard reiterated a Buy rating on the stock and raised the price target to $20 from $19, implying 47.38% upside potential to current levels.
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