Why Is Photronics Stock Plunging Wednesday?
Portfolio Pulse from Anusuya Lahiri
Photronics, Inc (NASDAQ:PLAB) stock plummeted after reporting Q4 results with revenue and adjusted EPS missing consensus estimates. The company saw a 2% Y/Y revenue growth to $216.3 million, below the expected $220.0 million, and an adjusted EPS of $0.48, missing the $0.49 consensus. Despite a slight improvement in gross profit and margin, and a positive outlook for the next quarter, shares dropped by 16.80% to $25.96.
February 21, 2024 | 2:59 pm
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Photronics, Inc's stock plunged following a Q4 earnings report that missed consensus estimates on both revenue and adjusted EPS. The company reported a modest revenue growth and a slight improvement in gross profit, but the stock reaction was sharply negative.
The sharp decline in PLAB's stock price is directly attributed to the earnings miss. Investors had higher expectations, and the reported figures falling short likely led to a loss of confidence, prompting a sell-off. The significant drop in stock price reflects the market's reaction to the missed estimates and the importance of meeting or exceeding consensus expectations.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100