Photronics, ticker symbol PLAB, is gearing up to unveil its financial performance for the first quarter of fiscal 2024 on February 21.
The company anticipates reporting revenues in the range of $217 million to $225 million, with non-GAAP earnings projected to fall between 45 and 53 cents.
Market analysts expect the bottom line to hit 49 cents per share, mirroring a solid 22.5% year-over-year growth trajectory over the past 30 days, according to the Zacks Consensus Estimate.
Furnishing a peek under the hood, Photronics’ earnings have exceeded the Zacks Consensus Estimate in two of the last four quarters, with a modest 8.51% average surprise.
Facing the Numbers
It is indeed a tightrope walk, considering the upcoming quarterly numbers. But before plunging into predictions, let’s consider key factors that could influence the impending results.
Stormy Weather Ahead
Regrettably, Photronics’ net outcomes for the first quarter are likely to grapple with stagnation in the semiconductor market. Notably, there is an expected hit on top-line growth in the to-be-reported quarter, attributed to decreased demand for IC, particularly from mainstream Asian manufacturers.
However, there’s a silver lining amidst the clouds—increased usage of AMOLED in upscale tablets, laptops, and automotive applications is expected to bolster top-line growth.
Furthermore, the company stands to benefit from long-term agreements with customers, which offer advantageous average selling prices and fab utilization rates. The gross margin is also expected to receive a fillip from robust demand for high-end ICD and FPD products. The bottom line is foreseen to gain from a favorable product mix and rigorous cost control.
What the Model Suggests
According to the Zacks model, a positive Earnings ESP coupled with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) boosts the likelihood of an earnings beat. However, the glass isn’t half full in this case.
Photronics currently holds an Earnings ESP of 0.00% and a Zacks Rank #3. Keen investors can explore potential stocks with our Earnings ESP Filter.
Stocks to Keep an Eye On
If you’re looking for promising alternatives, our model suggests several potential darlings that could clinch an earnings beat in their upcoming releases:
Inseego (INSG) is flaunting an Earnings ESP of +4.17% and currently flaunts a Zacks Rank #2. The company is all set to unveil its fourth-quarter 2023 results on February 21, having amassed a dazzling 54.2% year-to-date share gain.
NVIDIA (NVDA) is not far behind with an Earnings ESP of +3.67% and a Zacks Rank #2 at present. It is slated to announce its fourth-quarter fiscal 2024 results on February 21, having spurred a remarkable 46.6% share return year to date.
Vertiv (VRT) holds an Earnings ESP of +1.90% and a Zacks Rank #2. The company is poised to unveil its fourth-quarter 2023 results on February 21, following an impressive 31.1% year-to-date share return.
Stay informed about imminent earnings announcements through the Zacks Earnings Calendar.
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Disclaimer: The opinions and views expressed are those of the author and may not necessarily reflect the official policy or position of Nasdaq, Inc.
