The 10-second takeaway
For the quarter ended March 31 (Q1), Tower Semiconductor missed estimates on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly. Non-GAAP earnings per share contracted significantly. GAAP loss per share increased.
Margins shrank across the board.
Tower Semiconductor reported revenue of $112.6 million. The three analysts polled by S&P Capital IQ predicted revenue of $115.0 million on the same basis. GAAP reported sales were 33% lower than the prior-year quarter's $168.0 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 $0.13. The three earnings estimates compiled by S&P Capital IQ predicted $0.24 per share. Non-GAAP EPS of $0.13 for Q1 were 91% lower than the prior-year quarter's $1.50 per share. GAAP EPS were -$0.96 for Q1 compared to -$0.91 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 2.3%, much worse than the prior-year quarter. Operating margin was -15.1%, much worse than the prior-year quarter. Net margin was -20.6%, 910 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $129.6 million. On the bottom line, the average EPS estimate is $0.35.
Next year's average estimate for revenue is $557.0 million. The average EPS estimate is $1.80.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 120 members out of 126 rating the stock outperform, and six members rating it underperform. Among 14 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 12 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 $10.33.
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