Quarterly earnings lift semiconductor supply stock Photronics to 24-year high
Shares of Photronics, a mid-cap manufacturer of photomask technologies that are a key component in semiconductors, surged more than 45% on Wednesday, December 10, to mark their highest level since mid-2001. Investors were snapping up the stock after the company reported quarterly results that beat Wall Street’s expectations across all major indicators.
Details
Photronics shares rose 45.4% to $37.35 per share on the Nasdaq on Wednesday. It was the company’s strongest close in more than two decades, and its biggest one-day gain since 2008, Barron’s reports.
The rally followed results for the fourth quarter of fiscal 2025, ended October 31. Revenue declined 3.1% year over year to $215.8 million, but remained well above Wall Street’s projection of $205.2 million.
Earnings per share amounted to $0.60, roughly in line with the same quarter a year earlier. Analysts had forecast $0.45, Barron’s writes.
Reasons for good quarter
Demand linked to AI continued to buoy Photronics’ results, Barron’s writes. In the quarter, the company recorded higher orders for larger-format photomasks, which are used in the production of chips that enable AI applications.
Photomasks also have broader uses. They are essential in manufacturing LCDs, printed circuit boards, and other electronics, including smartphones. On the conference call, CEO George Macricostas said demand tied to “edge AI applications” in Asia also is on the rise.
Outlook
The company expects revenue between $217 million and $225 million in its fiscal-2026 first quarter, up from an actual $212 million last year. Wall Street had penciled in revenue to decline ahead of the latest earnings, Barron's points out.
Only two analysts cover the company’s stock, and both recommend “buy,” MarketWatch data shows. Their average target price of $32.95 per share is below current quotes.
