Tower Semiconductor Stock Gains On Q3 Beat, Clocks 25% Revenue Growth

Tower Semiconductor Ltd TSEM reported third-quarter FY21 revenue growth of 25% year-on-year to $386.7 million, beating the consensus of $384.97 million. It posted a 40% organic growth.
The gross margin expanded 171 bps Q/Q to 22.1%.
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% 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%, versus the consensus of $393.5 million.
Price Action: TSEM shares traded higher by 5.03% at $36.96 in the premarket session on the last check Monday.

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