Tower Semiconductor's Q3 Revenue Falls, But Still Focuses on Growth, Tech Advancements Despite Challenges
Portfolio Pulse from Anusuya Lahiri
Tower Semiconductor Ltd (NASDAQ:TSEM) reported a Q3 FY23 revenue decline of 16.1% Y/Y to $358.2 million, missing consensus by $0.4 million. EPS was $0.54, beating consensus by $0.04. Gross profit and adjusted operating profit also declined Y/Y. Despite challenges, the company is focusing on growth and technological advancements, with added capacity and new customers. Q4 revenue is expected to be around $350 million, compared to a $359.63 million consensus. The previously planned takeover by Intel Corporation (NASDAQ:INTC) was terminated in August. TSEM shares are down 43% YTD but traded up slightly at the time of publication.
November 13, 2023 | 3:54 pm
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NEUTRAL IMPACT
Intel Corporation's planned takeover of TSEM was terminated in August, pending regulatory approval from China. INTC is not directly affected by TSEM's Q3 results but was involved in the previous acquisition attempt.
INTC's termination of the takeover bid for TSEM is past news and has no direct impact on INTC's short-term price. However, it remains a point of interest for investors tracking past M&A activities.
CONFIDENCE 70
IMPORTANCE 30
RELEVANCE 50
NEUTRAL IMPACT
TSEM's Q3 revenue fell 16.1% Y/Y, missing consensus slightly, but EPS beat estimates. The company is focusing on growth and tech advancements. Q4 revenue is projected below consensus. Shares are down 43% YTD but saw a minor increase.
The mixed Q3 results with a revenue miss but an EPS beat, along with a focus on growth, suggest a neutral short-term impact. The cautious Q4 outlook may temper expectations, but the slight stock uptick indicates resilience.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 100