BROOKFIELD, Conn. - Photronics , Inc. (NASDAQ:PLAB), a global leader in photomask technologies, reported a slight decline in its stock by 0.7% following the announcement of its first quarter fiscal year 2024 financial results, which fell short of analyst expectations. The company revealed an adjusted earnings per share (EPS) of $0.48 for the quarter, just $0.01 below the analyst estimate of $0.49. Revenue for the quarter was also below the consensus estimate of $220 million, coming in at $216.33 million.
Despite the softer results, the company's first quarter revenue saw a 2% increase compared to the same period last year, indicating a year-over-year (YoY) growth. The company's chief executive officer, Frank Lee, noted that the typically lower seasonal demand was weaker than anticipated at the start of the quarter but improved as the quarter progressed. Lee highlighted the strength in high-end integrated circuit (IC) revenue, which rose both sequentially and YoY, primarily in the 22nm and 28nm nodes, as customers continue to migrate to these nodes for improved performance and cost efficiency. High-end flat panel display (FPD) revenue also saw an 8% increase YoY, although it decreased from the previous quarter due to typically lower seasonal demand for premium smartphone displays that utilize AMOLED technology.
For the second quarter of fiscal 2024, Photronics anticipates revenue to be between $226 million and $236 million, with adjusted EPS expected to range from $0.50 to $0.58. These projections place the midpoint of the guidance for both revenue and EPS below the analyst consensus of $230 million and $0.56, respectively.
Photronics' CEO expressed confidence in the company's performance and its outlook, stating, "The Photronics team continues their outstanding performance, and with expectations for growth in the second quarter, we are building momentum for another record year in 2024." The company's balance sheet remains robust with a strong cash generation in the quarter, which further strengthened its liquidity position for profitable growth investments.
Investors and analysts will be closely monitoring the company's performance in the coming quarter to see if it can meet its projected growth and adjust to the demands of the evolving market.
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