Wrapping up Q4 earnings, we look at the numbers and key takeaways for the semiconductor manufacturing stocks, including Photronics (NASDAQ:PLAB) and its peers.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a mixed Q4; on average, revenues beat analyst consensus estimates by 2.4%, while next quarter's revenue guidance was 5.6% below consensus. Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and semiconductor manufacturing stocks have held roughly steady amidst all this, with share prices up 0% on average since the previous earnings results.

Photronics (NASDAQ:PLAB)

Sporting a global footprint of facilities, Photronics (NASDAQ:PLAB) is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Photronics reported revenues of $216.3 million, up 2.5% year on year, falling short of analyst expectations by 1.7%. It was a weak quarter for the company, with a miss of analysts' revenue and EPS estimates.

“First quarter revenue increased year-over-year even though typically lower seasonal demand was weaker than anticipated, especially in the beginning of the quarter. Order rates improved through the quarter, continuing into second quarter,” said Frank Lee, chief executive officer.

Photronics delivered the weakest performance against analyst estimates of the whole group. The stock is down 17.6% since the results and currently trades at $25.75.

Read our full report on Photronics here, it's free.

Best Q4: Nova (NASDAQ:NVMI)

Headquartered in Israel, Nova (NASDAQ: NVMI) is a provider of quality control systems used in semiconductor manufacturing.

Nova reported revenues of $134.2 million, down 11.3% year on year, outperforming analyst expectations by 4.8%. It was a very strong quarter for the company, with an impressive beat of analysts' EPS estimates and a significant improvement in its inventory levels.

The stock is up 7.9% since the results and currently trades at $170.

Is now the time to buy Nova? Access our full analysis of the earnings results here, it's free.

Weakest Q4: Kulicke and Soffa (NASDAQ:KLIC)

Headquartered in Singapore, Kulicke & Soffa (NASDAQ: KLIC) is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $171.2 million, down 2.9% year on year, falling short of analyst expectations by 0.5%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a decline in its operating margin.

The stock is down 8.3% since the results and currently trades at $46.09.

Read our full analysis of Kulicke and Soffa's results here.

FormFactor (NASDAQ:FORM)

With customers across the foundry and fabless markets, FormFactor (NASDAQ:FORM) is a US-based provider of test and measurement technologies for semiconductors.

FormFactor reported revenues of $168.2 million, up 1.3% year on year, surpassing analyst expectations by 1.7%. It was a decent quarter for the company, with a significant improvement in its gross margin but underwhelming revenue guidance for the next quarter.

The stock is up 10.5% since the results and currently trades at $42.09.

Read our full, actionable report on FormFactor here, it's free.

KLA Corporation (NASDAQ:KLAC)

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation (NASDAQ:KLAC) is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $2.49 billion, down 16.7% year on year, surpassing analyst expectations by 1.1%. It was a mixed quarter for the company, with underwhelming revenue guidance for the next quarter.

The stock is down 1.1% since the results and currently trades at $635.

Read our full, actionable report on KLA Corporation here, it's free.

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