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

By Benzinga
Benzinga
Benzinga
November 8, 2021 Updated: November 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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