Tower Semiconductor Shares Gain On Strong Q2 Revenue Growth, Margin Expansion, Positive Q3 Outlook

  • Tower Semiconductor Ltd TSEM reported second-quarter FY21 revenue growth of 17% year-on-year to $362 million, beating the analyst consensus of $359.8 million. It posted a 26% organic growth Y/Y.
  • Gross profit rose 28% to $74 million, and gross margin expanded 176 bps to 20.4%.
  • EPS of $0.34 beat the analyst consensus of $0.33.
  • It generated $93 million in operating cash flow. It held $729 million in cash and equivalents.
  • It continued to execute its $150 million capacity expansion plan and earmarked an additional $100 million to expand 200mm differentiated platforms further.
  • The partnership with STMicroelectronics NV STM at the Agrate, Italy 300mm factory is likely to drive its 300mm capabilities to boost its position in advanced 300 mm-based analog RF, power platforms, displays, and other technologies.
  • Outlook: The company sees Q3 revenue of $385 million, with an upward or downward range of 5%, versus the analyst consensus of $364.77 million.
  • Price action: TSEM shares traded higher by 4.06% at $28.98 on the last check Monday.

Posted In: BriefsEarningsNewsGuidanceTech

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