The 10-second takeaway
For the quarter ended March 31 (Q1), Tower Semiconductor missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP loss per share increased.
Margins contracted across the board.
Tower Semiconductor recorded revenue of $168.0 million. The three analysts polled by S&P Capital IQ looked for a top line of $174.0 million on the same basis. GAAP reported sales were 39% higher than the prior-year quarter's $120.6 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.10. The two earnings estimates compiled by S&P Capital IQ averaged $0.09 per share. GAAP EPS were -$0.06 for Q1 compared to -$0.02 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 13.5%, 1,180 basis points worse than the prior-year quarter. Operating margin was 1.3%, 1,140 basis points worse than the prior-year quarter. Net margin was -11.5%, 700 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $176.9 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $725.5 million. The average EPS estimate is $0.45.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 124 members out of 128 rating the stock outperform, and four members rating it underperform. Among 18 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 17 give Tower Semiconductor a green thumbs-up, and one gives 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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.