Core Viewpoint - Photronics (PLAB) is expected to report its first-quarter fiscal 2025 results on February 26, with anticipated revenues between $208 million and $216 million and non-GAAP earnings between 43 cents and 19 cents [1][2]. Group 1: Financial Performance Expectations - For the upcoming quarter, PLAB's performance is likely to benefit from strong sales in the Integrated Circuit (IC) and Flat Panel Display (FPD) segments, with a notable 21% increase in high-end IC mask sales in the previous quarter [2][3]. - The demand for high-end photomasks is expected to be driven by growth in nodes such as 22-28 nanometers and sub-14 nanometers, particularly in the specialty Extreme Ultraviolet business [4]. - The FPD segment is also projected to see strong demand due to the increased adoption of AMOLED and LTPS display technologies, which require advanced photomasks [4][5]. Group 2: Market Dynamics and Challenges - Despite the anticipated growth, PLAB's first-quarter performance may be negatively impacted by seasonal factors, including the Chinese New Year slowdown and reduced demand for advanced mobile displays [5]. - Year-to-date, PLAB shares have declined by 7.6%, underperforming the Zacks Computer & Technology sector, which has seen a return of 0.9% [6]. - The company has outperformed peers such as Hoya and Dai Nippon Printing, which have experienced larger declines of 16.8% and 13.6%, respectively, as well as the Semiconductor Equipment - Photomasks industry peer Fujifilm, which has seen a 23.6% drop [7]. Group 3: Investment Outlook - Despite strong sales in high-end IC and growth in the FPD segment, PLAB faces challenges from sluggish semiconductor industry trends, geopolitical uncertainties, and macroeconomic headwinds that may affect financial performance [8]. - Currently, Photronics holds a Zacks Rank 3 (Hold), suggesting that investors should wait for a more favorable time to accumulate the stock [9].

Core Viewpoint - Photronics, Inc. is set to announce its financial results for the first quarter of fiscal 2025 on February 26, 2025, before market opening [1] Company Overview - Photronics is a leading global manufacturer of photomasks for integrated circuits (IC) and flat panel displays (FPD), utilizing high precision quartz plates that contain microscopic images of electronic circuits [3] - The company has been a trusted supplier for over 55 years and operates 11 strategically located manufacturing facilities across Asia, Europe, and North America [3] Upcoming Events - A public conference call will be held on the same day as the financial results announcement at 8:30 a.m. Eastern time, where management will address questions regarding financial performance, business conditions, and industry outlook [2] - The call will be broadcast live and available on-demand on the Photronics website, with registration suggested 15 minutes prior to the start time for those wishing to participate in the Q&A [2]

Core Viewpoint - Photronics (PLAB) is currently trading at a significant discount, with a Value Score of A, and a forward 12-month Price/Earnings ratio of 10.6X, which is lower than its median of 11.53X and the sector average of 26.99X [1][2]. Group 1: Financial Performance and Guidance - PLAB's shares have declined 17.5% over the trailing 12 months, underperforming the broader sector's appreciation of 29.5% [5]. - For Q1 fiscal 2025, PLAB expects revenues between $208 million and $216 million, with an operating margin of 23% to 25% and earnings between 43 cents and 49 cents per share [8]. - The Zacks Consensus Estimate for fiscal 2025 earnings is $2.30 per share, reflecting a 4.5% increase over the past 60 days and a 12.2% year-over-year growth [9]. Group 2: Market Trends and Demand - Despite sluggish semiconductor industry trends, the demand for PLAB's chips in AI, IoT, 5G, and consumer products is expected to improve in 2025 [2]. - The increasing demand for high-end chips supporting AI is anticipated to drive growth for PLAB, particularly in complex advanced leading-edge nodes [11]. - PLAB has seen improved demand for high-end integrated circuits (ICs) in Q4 fiscal 2024, primarily driven by high-end designs in Asia [12]. Group 3: Strategic Developments - PLAB is expanding its footprint in China with new facilities, capitalizing on the region's growth in semiconductor and display production [14]. - The company plans to invest $200 million in 2025 to expand U.S. IC manufacturing capacity, supported by improved liquidity with cash and short-term investments totaling $640.7 million [16]. - PLAB has returned $130 million to shareholders since 2018, with $100 million remaining under the current share repurchase authorization [17]. Group 4: Conclusion - Photronics is positioned for growth with an expanding global presence and strong market share, making it attractive for investors due to its undervaluation [18].

Core Viewpoint - Photronics, Inc. has appointed George Macricostas as Executive Chairman, effective January 6, 2025, marking a significant leadership transition within the company [1][2]. Company Leadership - George Macricostas has over 30 years of experience in technical and management roles, having been on the Photronics Board since 2002 and previously serving as Chairman of the Compensation Committee [2]. - With this appointment, David Garcia will succeed Macricostas in his committee roles, and both George and Constantine Macricostas will no longer be considered independent directors, leaving a Board of Directors of nine members, six of whom are independent [2]. Background of George Macricostas - George Macricostas was the Founder, Chairman, and CEO of RagingWire Data Centers, guiding the company through a two-stage sale to NTT of Japan in 2014 and 2018 [3]. - He previously held a senior vice president position at Photronics, overseeing the company's IT infrastructure [3]. Company Overview - Photronics is a leading manufacturer of photomasks for integrated circuits (IC) and flat panel displays (FPD), with over 50 years of experience in the industry [5]. - The company operates 11 manufacturing facilities strategically located in Asia, Europe, and North America [5].

Company Overview - Photronics, Inc. is a leading worldwide manufacturer of photomasks for integrated circuits (IC) and flat panel displays (FPD) [2] - The company has been a trusted supplier for over 50 years, founded in 1969 [2] - Photronics operates 11 strategically located manufacturing facilities across Asia, Europe, and North America [2] Upcoming Event - Photronics is scheduled to present at the 27th Annual Needham Growth Conference on January 14, 2025, at 4:30 p.m. Eastern Time [1] - The event will take place at the Lotte NY Palace hotel in New York City [1] - The presentation will be accessible via a live and on-demand webcast on the company's website [1]

Company Performance - Photronics Q4 FY24 sales exceeded guidance driven by AI-linked IC demand and stable FPD growth [2] - The company plans $200M in CapEx for 2025, which may strengthen its regional market position [2] Expansion Strategy - Photronics is expanding its operations in both China and the US [2] Investment Approach - The investment style focuses on GARP/Value stocks, targeting high-quality businesses with strong moats and growth potential [3] - The strategy emphasizes fundamentals, seeking stocks trading at a discount to intrinsic value with a clear margin of safety [3] - The long-term approach (5-7 years) aims for wealth accumulation through compounding while prioritizing downside protection [3]

Core Viewpoint - Photronics (PLAB) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system reflects changes in earnings estimates, which are strongly correlated with near-term stock price movements [4][6]. - An increase in earnings estimates typically leads to higher fair value calculations by institutional investors, resulting in buying or selling actions that affect stock prices [4]. Company Performance and Analyst Sentiment - The recent upgrade for Photronics suggests an improvement in the company's underlying business, which is expected to drive the stock price higher [5][11]. - For the fiscal year ending October 2025, Photronics is projected to earn $2.30 per share, representing a 12.2% increase from the previous year, with a 4.5% rise in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a 'Strong Buy' rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

Financial Performance - Total revenue for the year ended October 31, 2024, was $866,946, a decrease of 2% from $892,076 in 2023 [252]. - Gross profit for 2024 was $315,946, down from $336,162 in 2023, reflecting a gross margin of approximately 36.4% [252]. - Operating income decreased to $221,518 in 2024 from $253,050 in 2023, indicating a decline of about 12.5% [252]. - Net income attributable to Photronics, Inc. shareholders was $130,688 for 2024, compared to $125,485 in 2023, representing an increase of 2% [252]. - Comprehensive income for 2024 was $192,397, down from $205,246 in 2023, indicating a decrease of approximately 6.5% [255]. - Net income for the year ending October 31, 2024, was $183,848, a decrease from $199,634 in 2023, representing a decline of about 8% [260]. - Cash flows from operating activities provided $261,444 in 2024, down from $302,176 in 2023, indicating a decrease of approximately 13.5% [260]. - The company reported share-based compensation expense of $13,890 for 2024, an increase from $8,001 in 2023, marking a rise of about 73.6% [260]. - Total expenses incurred for the year ended October 31, 2024, were $13,890 million, a significant increase from $8,001 million in 2023, representing a 73.6% year-over-year growth [370]. Assets and Liabilities - Total current assets increased to $931,062 in 2024, up from $785,450 in 2023, marking a growth of approximately 18.5% [247]. - Total liabilities decreased to $231,300 in 2024 from $250,612 in 2023, a reduction of about 7.7% [247]. - Cash and cash equivalents rose to $598,485 in 2024, compared to $499,292 in 2023, reflecting an increase of approximately 19.9% [247]. - Property, plant, and equipment, net increased to $745.3 million as of October 31, 2024, from $709.2 million as of October 31, 2023, reflecting a growth of 5.1% [324]. - The total inventory as of October 31, 2024, was $56.5 million, an increase of 13.1% from $50.0 million as of October 31, 2023 [322]. - The allowance for credit losses was $1.1 million as of October 31, 2024, compared to $1.1 million as of October 31, 2023, indicating stability in credit risk management [316]. Research and Development - Research and development expenses increased to $16,576 in 2024 from $13,654 in 2023, a rise of about 21.5% [252]. - Research and development expenses were $16.6 million, $13.7 million, and $18.3 million for the years ended October 31, 2024, 2023, and 2022, respectively, indicating a year-over-year increase of 21.2% from 2023 to 2024 [300]. Foreign Currency and Risk Management - The primary net foreign currency exposures include the South Korean won, Japanese yen, New Taiwan dollar, Chinese renminbi, Singapore dollar, British pound sterling, and euro [225]. - The increase in foreign currency rate change risk is primarily due to increased net exposures of the New Taiwan dollar and South Korean won against the U.S. dollar [225]. - The company does not believe that a 10% change in the exchange rates of other non-U.S. dollar currencies would have had a material effect on its consolidated financial statements as of October 31, 2024 [225]. - The company engages in transactions in multiple currencies, which may affect reported revenue and operating income due to exchange rate fluctuations [223]. - The company does not enter into derivatives for speculative purposes, focusing instead on mitigating exposure to foreign currency fluctuations [224]. Customer Concentration - As of October 31, 2024, Customer A accounted for 19.2% of the net accounts receivable, a decrease from 21% in the previous year [415]. - Customer B's share of net accounts receivable increased to 14.6% from 10% year-over-year [415]. - For the revenue attributable to customers, Customer A represented 15% in the reporting period ending October 31, 2024, compared to 14% in 2022 [417]. - Customer B's revenue contribution rose to 12% from 10% year-over-year [417]. - Customer C's revenue share decreased to 9% from 13% in the previous year [417]. - The company monitors customer concentration in both accounts receivable and revenue to manage financial risk effectively [414]. - The company maintains a strategy of diversifying its customer base to reduce dependency on major clients [414]. Tax and Deferred Income - The income tax provision for the year ended October 31, 2024, was $63,567 million, a decrease from $70,312 million in 2023 [385]. - The company's income before income tax provisions was $247,415 million for the year ended October 31, 2024, compared to $269,946 million in 2023 [382]. - As of October 31, 2024, the net deferred income tax assets increased to $22,590 million from $21,062 million in the previous year, reflecting a valuation allowance decrease due to expected realizable tax benefits [389]. - The balance of unrecognized tax benefits increased to $14,720 million as of October 31, 2024, from $8,908 million in the previous year, including interest and penalties [395]. - The company established a valuation allowance for deferred tax assets, which decreased in 2024 due to management's assessment of realizable tax benefits [389]. Investments and Capital Expenditures - The company invested $130,942 in property, plant, and equipment in 2024, slightly down from $131,295 in 2023 [260]. - The company has unrecognized commitments totaling $74,046 million for the fiscal year 2025, primarily for property, plant, and equipment acquisitions [407]. - The company plans to exercise early buyout options for finance leases during the first half of 2025, which includes a $7.2 million inspection tool and a $35.5 million lithography tool [341][342]. Share-Based Compensation - The company granted 865,050 restricted stock awards in 2024, with a weighted-average grant-date fair value of $29.50 per share, compared to 791,925 awards in 2023 at $16.84 [373]. - The total intrinsic value of options exercised in 2024 was $2,981 million, an increase from $1,654 million in 2023 [378]. - The company recognized $1.2 million of incremental stock-based compensation due to the accelerated vesting of restricted stock awards for departing executives [370]. - Share-based compensation expenses increased in 2024, reflecting the company's ongoing commitment to incentivizing its workforce [368].

BROOKFIELD, Conn., Dec. 18, 2024 (GLOBE NEWSWIRE) -- Photronics, Inc. (Nasdaq: PLAB), a worldwide leader in photomask technologies and solutions, announced today the appointment of David Garcia to the company’s Board of Directors on December 12, 2024. This election expands Board membership to nine members, seven of whom are independent. Mr. Garcia is currently a strategic advisor and previously spent approximately 30 years practicing law, most recently at Holland & Hart after starting his career at Wilson S ...

BROOKFIELD, Conn., Dec. 12, 2024 (GLOBE NEWSWIRE) -- Photronics, Inc. (Nasdaq:PLAB), a worldwide leader in photomask technologies and solutions, announced today its participation in the 13th Annual NYC Summit investor conference being held Tuesday, December 17, 2024 at Mastro’s Steakhouse in New York City. Management will host small group investor meetings. Attendance at the NYC Summit is by invitation and is available solely to accredited investors and publishing research analysts. Please contact Co-Chair ...