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

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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.