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

Ad Disclosure: The rate information is obtained by Bankrate from the listed institutions. Bankrate cannot guaranty the accuracy or availability of any rates shown above. Institutions may have different rates on their own websites than those posted on Bankrate.com. The listings that appear on this page are from companies from which this website receives compensation, which may impact how, where, and in what order products appear. This table does not include all companies or all available products.

All rates are subject to change without notice and may vary depending on location. These quotes are from banks, thrifts, and credit unions, some of whom have paid for a link to their own Web site where you can find additional information. Those with a paid link are our Advertisers. Those without a paid link are listings we obtain to improve the consumer shopping experience and are not Advertisers. To receive the Bankrate.com rate from an Advertiser, please identify yourself as a Bankrate customer. Bank and thrift deposits are insured by the Federal Deposit Insurance Corp. Credit union deposits are insured by the National Credit Union Administration.

Consumer Satisfaction: Bankrate attempts to verify the accuracy and availability of its Advertisers' terms through its quality assurance process and requires Advertisers to agree to our Terms and Conditions and to adhere to our Quality Control Program. If you believe that you have received an inaccurate quote or are otherwise not satisfied with the services provided to you by the institution you choose, please click here.

Rate collection and criteria: Click here for more information on rate collection and criteria.