Gold prices bounce off 3-week lows; demand likely longer term
Investing.com -- Tower Semiconductor (NASDAQ:TSEM) reported first quarter earnings that missed analyst estimates, sending shares down 2.1% in trading.
The semiconductor manufacturer posted adjusted earnings per share of $0.45, falling short of the $0.46 expected by analysts. Revenue came in at $358.17 million, slightly above the consensus estimate of $355.54 million and representing 9% YoY growth.
Tower Semiconductor guided second quarter revenue to $372 million, plus or minus 5%, implying 6% YoY growth. The company reiterated its target for continued quarter-over-quarter revenue growth throughout 2025.
"Tower delivered continued record revenue in RF infrastructure, which includes SiPho and SiGe. We target further revenue growth of these technologies throughout the year," said CEO Russell Ellwanger.
Gross profit for Q1 was $73 million, flat compared to the same quarter last year. The company said the positive impact of higher revenue was offset by fixed costs from its new 300mm Agrate facility.
Operating profit declined slightly to $33 million from $34 million in Q1 2024. Net profit fell to $40 million from $45 million last year, which had benefited from a non-recurring tax benefit.
Tower Semiconductor maintained its corporate credit rating of "ilAA" with a stable outlook from Standard & Poor’s Maalot.
The company’s shares were down 2.1% following the earnings release, as investors reacted to the bottom-line miss despite the revenue beat and growth outlook.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.