Tower Semiconductor Stock Gains on Q3 Beat, Clocks 25 Percent Revenue Growth

Tower Semiconductor Stock Gains on Q3 Beat, Clocks 25 Percent Revenue Growth
Traders work on the main trading floor of the New York Stock Exchange shortly after the opening bell of the trading session in the Manhattan borough of New York City on Jan. 7, 2016. (Brendan McDermid/Reuters)
Benzinga
11/8/2021
Updated:
11/8/2021

Tower Semiconductor Ltd (TSEM) reported third-quarter FY21 revenue growth of 25 percent year-on-year to $386.7 million, beating the consensus of $384.97 million. It posted a 40 percent organic growth.

The gross margin expanded 171 bps Q/Q to 22.1 percent.

Adjusted EPS of $0.41 beat the consensus of $0.37.

It generated $107 million in operating cash flow. It held $718 million in cash and equivalents.

“We guided to end 2021 breaking $1.5 billion revenue with a fourth quarter annualized run rate greater than $1.6 billion, as compared to a $1.27 billion 2020 revenue. Our initiatives on capacity growth with a richer capability mix, combined with certain pricing initiatives, target more than 15 percent net profit margins in 2022. Our long-term forecast is very positive, indicating continuous growth for the foreseeable years,” said Russell Ellwanger, CEO of Tower Semiconductor.

Outlook

The company sees mid-range Q4 revenue of $410 million, with an upward or downward range of 5 percent, versus the consensus of $393.5 million.

Price Action

TSEM shares traded higher by 4.63 percent at $36.82 on the last check Monday.
By Anusuya Lahiri
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