The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Tower Semiconductor met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded significantly, and GAAP earnings per share contracted to a loss.
Margins shrank across the board.
Tower Semiconductor tallied revenue of $174.6 million. The three analysts polled by S&P Capital IQ expected sales of $175.8 million on the same basis. GAAP reported sales were 29% higher than the prior-year quarter's $135.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $0.11. The two earnings estimates compiled by S&P Capital IQ anticipated $0.10 per share on the same basis. GAAP EPS were -$0.05 for Q4 against $0.01 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 10.1%, 1,460 basis points worse than the prior-year quarter. Operating margin was -1.7%, 1,720 basis points worse than the prior-year quarter. Net margin was -9.6%, 1,060 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $169.3 million. On the bottom line, the average EPS estimate is $0.05.
Next year's average estimate for revenue is $742.7 million. The average EPS estimate is $0.22.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 123 members rating the stock outperform and four members rating it underperform. Among 20 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 18 give Tower Semiconductor a green thumbs-up, and two give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Tower Semiconductor is buy, with an average price target of $2.67.
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