Photronics (NASDAQ:PLAB) stock gained on Wednesday after the company released its third-quarter financial report.
The company reported an adjusted EPS of 51 cents, topping the Wall Street view of 39 cents.
Quarterly revenues of $210.39 million are down 0.3% year-over-year and quarter-over-quarter.
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Sales topped the analyst consensus estimate of $204.30 million.
Integrated Circuits (IC) revenue reached $147.8 million, declining 5% year-over-year and 5% sequentially.
Flat Panel Displays (FPD) revenue was $62.6 million, up 14% year-over-year and 14% sequentially.
The gross margin declined by 190 bps to 33.7%. The operating margin fell by 180 bps to 22.9%.
Operating cash flow was $50.1 million in the quarter under review.
Cash invested in organic growth through capital expenditures was $24.8 million.
The board approved an increase of $25.0 million to the share repurchase authorization.
Cash and short-term investments balance at the end of the quarter was $575.8 million.
Chairman and CEO George Macricostas emphasized the company's focus on operational efficiency to maintain fast customer cycle times and highlighted plans to accelerate investments aimed at boosting geographic revenue diversification and driving long-term revenue and earnings growth.
Outlook
For the fourth quarter, Photronics expects revenue of $201 million-$209 million versus the analyst consensus estimate of $208.37 million. The company expects adjusted EPS of 42 cents and 48 cents compared to the analyst consensus estimate of 42 cents.
Price Action: Photronics stock is trading higher by 10.15% to $24.53 premarket at last check Wednesday.
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