The company’s results are expected to be benefited by the demand that is likely to be strong across all of its end markets. The growing markets in China and demand from captives had already enabled the company to reposition its business and Photronics is likely to be benefited by this in the fourth quarter.
It is predicted that high-end integrated circuits will once again be the primary contributor to growth in the fourth quarter. The photomasks maker is likely to experience an increase in sales of AMOLED and low-temperature polycrystalline silicon liquid crystal display photomasks due to the increase in mobile applications.
Intel Q3 profit jumps 42%, beats estimates
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For the third quarter, the company posted a 225% jump in earnings helped by higher revenue and an increase in the demand across all of its end markets. The results included a one-time tax benefit. Revenue improved 22% on a jump in integrated circuit revenue and a rise in flat panel display.
For the fourth quarter, the company had anticipated revenue in the range of $133 million to $141 million and earnings in the range of $0.14 to $0.19 per share. Photronics has increased its momentum heading into the end of fiscal 2018 and is now in an even stronger position to ramp China facilities in 2019.
Shares of Photronics opened lower on Monday but changed course to the green territory. The stock has risen over 7% in the year so far while it has fallen over 8% in the past three months.