Photronics Inc. (NASDAQ:PLAB) stock rose in Wednesday premarket trading after the company reported fiscal third-quarter results that beat Wall Street estimates.

Photronics Earnings and Sales Beat Estimates

Photronics reported adjusted earnings of 50 cents per share, beating the analyst consensus estimate of 40 cents. Earnings slipped from 51 cents per share a year earlier.

Sales rose 2.7% year over year to $216.047 million, beating the $208.840 million estimate, according to Benzinga Pro. Revenue also increased 2.9% sequentially.

GAAP net income attributable to Photronics shareholders rose to $28.9 million, or 49 cents per diluted share. That compared with $22.9 million, or 39 cents per share, a year earlier.

Integrated circuit photomask revenue rose 5% year over year and sequentially to $154.7 million. Flat-panel display photomask revenue fell 2% on both measures to $61.4 million.

Photomasks are quartz or glass plates that carry microscopic circuit images. Manufacturers use them to transfer circuit patterns onto semiconductor wafers and display substrates.

Fourth-Quarter Guidance

For the fourth quarter of fiscal 2026, Photronics expects revenue of $207 million to $227 million. It forecast an operating margin of 19% to 24% and adjusted earnings of 40 cents to 56 cents per share.

Cash and Investments

Photronics ended the quarter with $672.8 million in cash, cash equivalents and short-term investments. That included $503.5 million associated with joint ventures in which the company holds a 50.01% stake.

Operating activities generated $76.3 million in cash. Capital expenditures for organic growth totaled $37 million.

Delayed Chip Designs Recover

Chairman and CEO George Macricostas said some semiconductor design releases delayed during the second quarter recovered in the latest period.

He said high factory utilization across the industry supported migration to more advanced chipmaking nodes. As a result, high-end products reached a record 44% of integrated circuit revenue.

Investments in the U.S. and South Korea also remain on schedule, Macricostas said.

Photronics Price Action

PLAB Price Action: Photronics shares were up 18.16% at $34.64 during premarket trading on Wednesday, according to Benzinga Pro data.

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