Even up nearly 50% already today, Photronics stock still looks cheap enough to buy.Photronics (PLAB +43.13%) stock, which makes "photomasks" (devices for laying out circuit designs on semiconductor wafers) for the semiconductor industry, shocked investors with a big earnings beat this morning -- and the stock is up 46.5% as of 9:45 a.m. ET.Analysts forecast Photronics would earn only $0.44 per share on $204.5 million in Q4 2025, but the company actually earned $0.60 per share, with sales of $215.8 million. ...

Financial Data and Key Metrics Changes - The company reported fourth quarter revenue of $216 million, exceeding expectations and increasing 3% sequentially, but declining 3% year-over-year [4][13] - Non-GAAP diluted EPS was $0.60 per share, surpassing guidance [4][17] - Gross margin improved to 35%, and operating margin was 24%, both exceeding guidance [15][19] Business Line Data and Key Metrics Changes - Integrated Circuit (IC) revenue was $157 million, representing a 4% year-over-year decline, but high-end IC shipments reached a record 42% of total IC revenue [11][13] - Flat Panel Display (FPD) revenue was $58 million, declining 1% year-over-year due to order timing, but demand is expected to remain strong [12][14] Market Data and Key Metrics Changes - The high-end market remains strong, driven by investments in hyperscale data centers for AI rollouts, while the mainstream IC market is stabilizing but remains soft [10][11] - The company is experiencing strong demand in the U.S., which now represents 20% of total revenue, benefiting from reshoring efforts [13][11] Company Strategy and Development Direction - The company is executing strategic geographic expansions at existing facilities to enhance revenue contributions and diversify geographic revenue mix [5][6] - Investments are aligned with industry trends such as advanced node migration and regionalization, with a focus on higher-end nodes in the U.S. and Korea [6][8] - The company plans to increase capital expenditures to approximately $330 million in fiscal 2026 to drive future organic growth [19][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the high-end market's sustainability, supported by robust order patterns from existing core customers [10][58] - The company anticipates continued growth in high-end IC demand and is well-positioned to capitalize on outsourcing trends from captive manufacturers [50][49] Other Important Information - The company recognized a $16.8 million benefit from the reversal of a historical U.S. tax loss valuation allowance, reflecting improved performance and outlook [16][17] - Total cash and short-term investments increased to $588 million, including $422 million held in joint ventures [19] Q&A Session Summary Question: Market share relative to competitors - Management indicated that while a competitor has a larger market share in IC, Photronics is comparable in FPD, and they expect to capture more high-end shares due to growing U.S. demand [25][29] Question: Mainstream business and pricing competition - Management noted that the mainstream market in China is facing competition from local mask houses, but they are focusing on high-value product mixes to differentiate themselves [31][38] Question: G8.6 adoption in flat panel displays - Management expects gradual increases in G8.6 revenue contributions starting in fiscal 2026, as adoption expands in various applications [40][39] Question: Revenue potential from Allen, Texas facility - Management anticipates incremental revenue and profitability from the Allen facility, with revenue expected to start in the second half of fiscal 2026 [44][45] Question: Outsourcing trends from captive manufacturers - Management observed an increase in captives looking for outsourcing opportunities, which is expected to benefit Photronics due to its positioning in key regions [49][50]

Financial Data and Key Metrics Changes - The company reported Q4 revenue of $216 million, a 3% sequential increase but a 3% decline year-over-year [3][10] - Non-GAAP diluted EPS was $0.60 per share, exceeding guidance, while GAAP EPS attributable to shareholders was $1.07 per share, benefiting from a $16.8 million tax valuation allowance reversal [11][12] - Gross margin improved to 35%, and operating margin was 24%, both exceeding expectations [11] Business Line Data and Key Metrics Changes - Integrated Circuit (IC) revenue was $157 million, down 4% year-over-year, with high-end IC shipments reaching a record 42% of total IC revenue [10][8] - Flat Panel Display (FPD) revenue was $58 million, reflecting a 1% decline year-over-year due to order timing, but demand is expected to remain strong [11][8] Market Data and Key Metrics Changes - The high-end market remains strong, driven by investments in hyperscale data centers for AI, while the mainstream IC market is stabilizing after a period of softness [7][10] - The U.S. market showed particularly strong demand, validating the company's expansion initiatives [10][8] Company Strategy and Development Direction - The company is executing strategic geographic expansions at existing facilities to enhance revenue contributions and diversify geographic revenue mix [3][4] - Investments are aligned with two industry trends: advanced node migration and regionalization, with a focus on higher-end nodes in the U.S. and Korea [4][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in capturing more high-end market share due to reshoring efforts in the U.S. and strong demand for trusted products [22][23] - The company anticipates fiscal Q1 revenue between $217 million and $225 million, with operating margins between 23% and 25% [15] Other Important Information - The company plans to invest approximately $330 million in CapEx for fiscal 2026, focusing on organic growth and strategic opportunities [13][12] - Cash and short-term investments increased to $588 million, including $422 million held in joint ventures [13] Q&A Session Summary Question: Market share relative to competitors - Management indicated that while a competitor has a larger market share in IC, both companies are about the same size when considering FPD, where the competitor does not participate [19][22] Question: Competitive environment and mainstream business - Management noted that the mainstream market in China is facing competition from local mask houses, but the company is focusing on high-value products and key customers to differentiate itself [24][29] Question: Outsourcing trends and pricing - Management observed an increase in outsourcing opportunities from captive mask makers, particularly for high-end products, which generally command higher ASPs [42][39] Question: Long-term planning discussions with customers - Management reported an increase in long-term planning discussions with customers, indicating improved sentiment and order planning [43][45] Question: Revenue potential from new capacity - Management expects revenue from the Allen, Texas facility to begin in the second half of fiscal 2026, with incremental revenue and profitability anticipated [34][35]

分组1 - Photronics reported quarterly earnings of $0.6 per share, exceeding the Zacks Consensus Estimate of $0.47 per share, and showing a slight decrease from $0.59 per share a year ago, resulting in an earnings surprise of +27.66% [1] - The company achieved revenues of $215.77 million for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 4.45%, although this represents a decline from year-ago revenues of $222.63 million [2] - Over the last four quarters, Photronics has surpassed consensus EPS estimates two times and topped consensus revenue estimates just once [2] 分组2 - The stock has gained approximately 9% since the beginning of the year, while the S&P 500 has increased by 16.3%, indicating underperformance relative to the broader market [3] - The current consensus EPS estimate for the upcoming quarter is $0.49 on revenues of $207.81 million, and for the current fiscal year, it is $2.03 on revenues of $846.88 million [7] - The Semiconductor Equipment - Photomasks industry, to which Photronics belongs, is currently ranked in the bottom 16% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Investor Presentation December 2025 PHOTRONICS Safe Harbor Statement PHOTRONICS This presentation and some of our comments during this presentation may contain projections or other forward-looking statements regarding future events, our future financial performance, and/or the future performance of the industry. These statements are predictions and contain risks and uncertainties. We refer you to the risk factors in our Annual Report on Form 10-K for the fiscal year ended October 31, 2024 and other subseque ...

Revenue Performance - Revenue for the fourth quarter of fiscal 2025 was $215.8 million, down 3.1% year-over-year but up 2.6% sequentially[6] - Full year revenue for fiscal 2025 was $849.3 million, a decrease of 2.0% compared to $866.9 million in fiscal 2024[6] - IC revenue for the fourth quarter was $157.4 million, down 4% year-over-year but up 7% sequentially[6] - FPD revenue for the fourth quarter was $58.3 million, down 1% year-over-year and down 7% sequentially[6] - For Q1 fiscal 2026, revenue is expected to be between $217 million and $225 million, with non-GAAP net income projected between $0.51 and $0.59 per diluted share[7] Net Income and Earnings Per Share - GAAP net income for the fourth quarter was $61.8 million, or $1.07 per diluted share, compared to $33.9 million, or $0.54 per diluted share in Q4 2024[6] - Non-GAAP net income for the fourth quarter was $34.6 million, or $0.60 per diluted share, compared to $37.1 million, or $0.59 per diluted share in Q4 2024[6] - U.S. GAAP net income attributable to Photronics, Inc. shareholders for the three months ended October 31, 2025, was $61.8 million, compared to $33.9 million for the same period in 2024, representing an increase of 82.5%[21] - Non-GAAP net income attributable to Photronics, Inc. shareholders for the year ended October 31, 2025, was $120.5 million, slightly down from $127.6 million in 2024, a decrease of 5.4%[21] - U.S. GAAP diluted earnings per share attributable to Photronics, Inc. shareholders for the three months ended October 31, 2025, was $1.07, up from $0.54 in the same period of 2024, an increase of 98.1%[21] - Non-GAAP diluted earnings per share attributable to Photronics, Inc. shareholders for the year ended October 31, 2025, was $2.01, compared to $2.05 in 2024, a decrease of 1.9%[21] Cash Flow and Investments - Cash generated from operating activities for the full year was $247.8 million, with $188.1 million invested in organic growth through capital expenditures[6] - Cash, cash equivalents, and short-term investments at the end of Q4 were $588.2 million, with $422.3 million associated with joint ventures[6] Foreign Exchange and Tax Effects - The estimated tax effects of foreign exchange (FX) gain/loss for the three months ended October 31, 2025, were $4.78 million, compared to $(1.94) million in the same period of 2024[21] - FX gain/loss for the three months ended October 31, 2025, was $(18.62) million, compared to $7.76 million in the same period of 2024[21] - The reversal of deferred tax valuation allowance for the year ended October 31, 2025, was $(16.75) million, consistent with the previous year[21] Shareholder Information - The weighted-average number of diluted common shares outstanding decreased to 57.98 million for the three months ended October 31, 2025, from 62.46 million in the same period of 2024[21] - Non-GAAP adjustments affected diluted earnings per share by $(0.47) for the three months ended October 31, 2025, compared to $0.05 in the same period of 2024[21] - The company reported a noncontrolling interest effect of $3.34 million for the three months ended October 31, 2025, compared to $(2.64) million in the same period of 2024[21] Strategic Outlook - The company anticipates that the extension of its capabilities in Korea will help diversify its geographic revenue mix and increase exposure to leading-edge chip designs[3]

Core Insights - Photronics, Inc. reported strong financial results for the fourth quarter and full year of fiscal 2025, achieving record high end revenue, particularly in the United States [2][3]. Full Year Fiscal 2025 Results - Total revenue for fiscal year 2025 was $849.3 million, a decrease of 2.0% year-over-year [7]. - GAAP net income attributable to Photronics, Inc. shareholders was $136.4 million, or $2.28 per diluted share, compared to $130.7 million, or $2.09 per diluted share in 2024 [7]. - Non-GAAP net income attributable to Photronics, Inc. shareholders was $120.6 million, or $2.01 per diluted share, down from $127.6 million, or $2.05 per diluted share in 2024 [7]. - Integrated Circuit (IC) revenue was $615.1 million, down 4% year-over-year, while Flat Panel Display (FPD) revenue was $234.2 million, up 2% year-over-year [7]. Fourth Quarter Fiscal 2025 Results - Revenue for the fourth quarter was $215.8 million, down 3.1% year-over-year but up 2.6% sequentially [7]. - GAAP net income attributable to Photronics, Inc. shareholders was $61.8 million, or $1.07 per diluted share, compared to $33.9 million, or $0.54 per diluted share in the fourth quarter of 2024 [7]. - Non-GAAP net income attributable to Photronics, Inc. shareholders was $34.6 million, or $0.60 per diluted share, compared to $37.1 million, or $0.59 per diluted share in the fourth quarter of 2024 [7]. - IC revenue for the fourth quarter was $157.4 million, down 4% year-over-year but up 7% sequentially [7]. - FPD revenue was $58.3 million, down 1% year-over-year and down 7% sequentially [7]. Cash Flow and Investments - Cash generated from operating activities for the year was $247.8 million, with cash invested in organic growth through capital expenditures totaling $188.1 million [7]. - For the fourth quarter, cash generated from operating activities was $87.8 million, with cash invested in capital expenditures amounting to $67.5 million [7]. Guidance for First Quarter Fiscal 2026 - Photronics expects revenue for the first quarter of fiscal 2026 to be between $217 million and $225 million, with non-GAAP net income attributable to shareholders projected to be between $0.51 and $0.59 per diluted share [5].

Core Viewpoint - Photronics, Inc. is set to announce its financial results for the fourth quarter of fiscal 2025 on December 10, 2025, before market opening [1] Group 1: Financial Results Announcement - The financial results announcement will take place on December 10, 2025, before the market opens [1] - A public conference call will be hosted on the same day at 8:30 a.m. Eastern time to discuss the financial performance and business conditions [2] - The call will be available live and on-demand on the Photronics website, with a suggestion for participants to register fifteen minutes prior to the call [2] Group 2: Company Overview - Photronics is a leading manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks, essential for the manufacturing process of ICs and FPDs [3] - The company has been a trusted supplier for over 56 years, having been founded in 1969 [3] - Photronics operates 11 strategically located manufacturing facilities across Asia, Europe, and North America [3]

Summary of Photronics FY Conference Call Company Overview - **Company**: Photronics (NasdaqGS: PLAB) - **Industry**: Semiconductor and Flat Panel Display (FPD) manufacturing - **Established**: 1969 - **Revenue Composition**: Approximately 80% of revenue originates from Asia, with 17% from the United States and a small percentage from Europe [3][4][5] Financial Performance - **Operating Cash Flow**: Approximately 25% to 26% of total revenue over the trailing 12 months, indicating improved cash flow generation [3] - **Market Size**: The total photomask market is about $6 billion, with projections suggesting it could grow to $10 billion by 2030 if the semiconductor industry reaches $1 trillion [16][17] - **Current Revenue**: Approximately $600 million, with potential to double to about $1.2 billion by 2030 if market conditions hold [17] Business Segments - **Semiconductor Segment (IC)**: Represents about half of the revenue, focusing on high-end photomasks for advanced chip designs [3][5] - **Flat Panel Display Segment (FPD)**: Accounts for about 25% of the business, with increasing complexity in display designs driving demand [15][24] Industry Trends - **Regionalization and Reshoring**: Post-COVID, there is a trend towards diversifying semiconductor manufacturing away from China, with significant investments in the U.S. and Southeast Asia [9][21] - **Node Migration**: The industry is moving towards smaller geometries, with increasing mask set values as designs become more complex [22][23] Competitive Landscape - **Market Share**: Photronics holds about one-third of the merchant photomask market, with captives now representing 63% of the total market [12][27] - **Valuation Discrepancy**: Photronics has a higher valuation compared to some competitors despite similar revenue figures, indicating potential for market re-evaluation [27] Investment and Expansion - **U.S. Facilities**: Investments are being made to expand capabilities in Boise, Idaho, and Allen, Texas, to meet customer demand for advanced nodes [10][19] - **Asia Investments**: Additional investments are planned in Asia to capture more market share, particularly in non-JV facilities [18][21] Customer Base - **Key Customers**: Major semiconductor manufacturers such as Samsung, TSMC, and Intel are primary customers, with a focus on those that manufacture chips rather than design them [6][13] - **China Exposure**: Approximately 25% of revenue comes from China, split between IC and FPD, with efforts to diversify revenue sources [20][21] Challenges and Opportunities - **EUV Technology**: The company currently lacks EUV capabilities, which are critical for producing the most advanced photomasks, posing a challenge for capturing leading-edge business [12][13] - **Market Dynamics**: Increased complexity in semiconductor designs is driving demand for more photomasks, presenting opportunities for growth [32][36] Conclusion Photronics is positioned to benefit from the growing semiconductor market, with strategic investments in U.S. and Asian facilities aimed at enhancing production capabilities and diversifying revenue streams. The company faces challenges related to advanced technology requirements but has opportunities for growth through increased demand for complex chip designs and regional manufacturing shifts.

Core Viewpoint - Photronics, Inc. is actively engaging with investors through participation in upcoming conferences, highlighting its position as a leader in photomask technologies and solutions [1][2]. Company Overview - Photronics is a leading global manufacturer of integrated circuit (IC) and flat panel display (FPD) photomasks, which are essential for the manufacturing process of these technologies [3]. - The company has been a trusted supplier for over 56 years, having been founded in 1969 [3]. - Photronics operates 11 strategically located manufacturing facilities across Asia, Europe, and North America [3].