The third quarter results of Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) overtook the consensus analysts' estimate, and the company provided upbeat guidance for the fourth quarter. Nevertheless, the company's share price is currently down 3.55% on Nasdaq, giving a market cap of $2.4 billion.
Revenue for the third quarter of 2020 was $310 million, which compares with $310 million in the previous quarter and $312 million in the third quarter of 2019. This is in line with market estimates and within the company's guidance range.
On a GAAP basis, Tower posted a net profit of $15.2 million for the third quarter, or $0.14 per share, which compares with $19 million, or $0.18 per share in the previous quarter, and $22.2 million, or $0.21 per share, in the third quarter of 2019. On a non-GAAP basis, the net profit for the third quarter of this year was $19.1 million, or $0.18 per share, $0.04 above the consensus estimate. This compares with $26.5 million in the corresponding quarter of 2019. The company generated $69 million cash for regular activities
EBITDA for the third quarter of 2020 was $79.2 million, up 5.1% in comparison with the corresponding quarter.
For the first nine months of 2020, revenue totaled $920 million, 0.8% less than in the corresponding period of 2019. Net profit for the first nine months was $51.3 million and EBITDA $234 million.
For the fourth quarter, Tower Semiconductor expects revenue of $340 million, plus or minus 5%, which will give 10% quarter over quarter growth and 11% year over year growth. The analysts' estimate for fourth quarter revenue is $325 million. If Tower's guidance proves correct, the company will have total revenue for 2020 of $1.26 billion, 2% more than in 2019.
Tower Semiconductor CEO Russell Ellwanger said, "Our fourth quarter of 2020 revenue growth guidance, 17% quarter over quarter and 14% year over year organic, driven by continued and increased strength in our RF and Power IC served markets, sets a good bridge to the new year.
"We look forward to 2021, with RF and Power IC continuing the present trend and increases in both industrial sensors and power discrete served markets, as evidenced by customer demand forecasts, and backed by market research reports. This strength should couple well with our increased 300mm and 200mm capability and capacity expansions."
Published by Globes, Israel business news - en.globes.co.il - on November 12, 2020
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