Tower Semiconductor (NASDAQ:TSEM) Announces Earnings Results

Tower Semiconductor (NASDAQ:TSEM) issued its earnings results on Tuesday. The semiconductor company reported $0.88 earnings per share for the quarter, topping the consensus estimate of $0.76 by $0.12, Briefing.com reports. The business had revenue of $460.08 million for the quarter, compared to analysts’ expectations of $454.68 million. Tower Semiconductor had a return on equity of 9.97% and a net margin of 16.94%.The business’s revenue for the quarter was up 23.7% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.41 EPS.

Here are the key takeaways from Tower Semiconductor’s conference call:

• Record second-quarter results included $460 million in revenue, up 11% sequentially and 24% year over year, with record 30% gross, 20% operating, and 20% net margins.
• Management guided third-quarter revenue to $520 million and raised its 2028 model to $3.6 billion in revenue, $1.63 billion in gross profit, and $1.2 billion in net profit, citing stronger demand and product mix.
• Silicon photonics revenue rose more than 60% sequentially and 270% year over year, with a $680 million annualized second-quarter run rate and a target of $1 billion in the fourth quarter; customer contracts represent approximately $1.3 billion of 2027 SiPho revenue.
• Tower announced a Japan expansion with METI support, including repurposing the Arai facility and building an adjacent 300-millimeter fab expected to eventually quadruple Japanese 300-millimeter output for silicon photonics, silicon germanium, and advanced optical packaging.
• The outlook depends on execution risks including wafer pricing, cost assumptions, 85% fab utilization, and the timing of equipment installation and customer qualifications; approximately half of the company’s $920 million capacity investment remains to be paid during the second half of 2026 and 2027.

Tower Semiconductor Stock Up 7.4%

NASDAQ TSEM traded up $15.70 on Thursday, hitting $226.84. 1,494,358 shares of the stock were exchanged, compared to its average volume of 2,396,661. Tower Semiconductor has a fifty-two week low of $45.51 and a fifty-two week high of $319.94. The company has a 50-day moving average price of $245.90 and a 200-day moving average price of $199.81. The company has a quick ratio of 4.92, a current ratio of 5.63 and a debt-to-equity ratio of 0.04. The company has a market cap of $25.51 billion, a PE ratio of 89.66 and a beta of 0.90.

Wall Street Analysts Forecast Growth

TSEM has been the subject of a number of analyst reports. UBS Group reissued a “buy” rating on shares of Tower Semiconductor in a report on Wednesday, July 15th. Benchmark reaffirmed a “buy” rating on shares of Tower Semiconductor in a research report on Wednesday. Wedbush increased their price objective on Tower Semiconductor from $140.00 to $300.00 and gave the stock a “neutral” rating in a research report on Thursday, May 14th. Finally, Susquehanna lifted their target price on Tower Semiconductor from $180.00 to $330.00 and gave the company a “positive” rating in a research report on Thursday, May 14th. Three analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company. According to MarketBeat.com, Tower Semiconductor presently has a consensus rating of “Moderate Buy” and a consensus price target of $276.75.

Institutional Investors Weigh In On Tower Semiconductor

Several hedge funds and other institutional investors have recently made changes to their positions in the business. CIBC Private Wealth Group LLC increased its holdings in shares of Tower Semiconductor by 254.2% in the 3rd quarter. CIBC Private Wealth Group LLC now owns 418 shares of the semiconductor company’s stock valued at $30,000 after acquiring an additional 300 shares during the period. Advisory Services Network LLC purchased a new position in Tower Semiconductor in the 3rd quarter valued at $48,000. Kestra Advisory Services LLC purchased a new position in Tower Semiconductor during the 4th quarter worth $52,000. Quadrant Capital Group LLC acquired a new stake in shares of Tower Semiconductor in the 3rd quarter worth $125,000. Finally, Aviva PLC acquired a new stake in shares of Tower Semiconductor in the 4th quarter worth $213,000. Institutional investors and hedge funds own 70.51% of the company’s stock.

Tower Semiconductor Company Profile

Tower Semiconductor, traded on NASDAQ under the symbol TSEM, is a specialty foundry company that provides analog and mixed-signal semiconductor manufacturing services to a broad array of customers worldwide. The company focuses on delivering tailored process technologies for high-growth markets, including radio frequency (RF), power management, imaging, automotive electronics, and Internet of Things (IoT) applications. By combining deep process know-how with flexible manufacturing capabilities, Tower Semiconductor supports the development and volume production of advanced semiconductor devices for fabless and integrated device manufacturer customers.

The company’s technology portfolio spans standard and specialty processes such as CMOS, BiCMOS, high-voltage, radio frequency, silicon photonics, micro-electromechanical systems (MEMS) and image sensor production.