Upcoming AWS Coverage on Power Integrations Post-Earnings Results
LONDON, UK / ACCESSWIRE / May 23, 2017 / Active Wall St. announces its post-earnings coverage on Tower Semiconductor Ltd (NASDAQ: TSEM). The Company and its subsidiaries operate collectively under the brand name TowerJazz. Tower Semiconductor released its financial results for the first quarter fiscal 2017 (Q1 FY17) on May 08, 2017. The Migdal Haemek, Israel-based Company's revenues grew 19% y-o-y, outperforming market consensus estimates. Register with us now for your free membership at:
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One of Tower Semiconductor's competitors within the Semiconductor - Integrated Circuits space, Power Integrations, Inc. (NASDAQ: POWI), reported on April 27, 2017, its financial results for the quarter ended March 31, 2017. AWS will be initiating a research report on Power Integrations in the coming days.
Today, AWS is promoting its earnings coverage on TSEM; touching on POWI. Get our free coverage by signing up to
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Earnings Reviewed
Tower Semiconductor reported revenues of $330.08 million in Q1 FY17, which came in above the $278.04 million recorded in Q1 FY16. Revenue numbers for Q1 FY17 also topped market forecasts of $330.00 million.
The integrated circuits chipmaker's GAAP net profit for Q1 FY17 came in at $45.51 million, or $0.45 per diluted share, compared to $65.94 million, or $0.69 per diluted share, in Q1 FY16. Meanwhile, the Company's adjusted net profit increased to $49.94 million, or $0.49 per diluted share, in Q1 FY17 from $31.58 million, or $0.31 per diluted share, in Q1 FY16. Meanwhile, Wall Street had expected the Company to report adjusted net profit of $0.43 per diluted share.
Operating Metrics
During Q1 FY17, the Company's GAAP gross profit rose 38% to $84.77 million from $61.35 million in the year ago same period. Moreover, the Company's gross margin also improved to 26% in Q1 FY17 from 22% in the prior year's same quarter. The Company spent $32.01 million as operating costs and expenses in Q1 FY17 compared to $30.53 million in Q1 FY16.
In the reported quarter, operating profit surged 71% to $52.76 million from $30.81 million in the year ago comparable quarter. Operating margin in Q1 FY17 stood at 16% versus 11% in Q1 FY16. Furthermore, the Company's Q1 FY17 EBITDA came in at $101.02 million, or 31% of revenues, rising from $77.65 million, or 28% of revenues, in Q1 FY16.
Cash Flow and Balance Sheet
In quarter ended March 31, 2017, net cash provided by operating activities increased to $82.14 million from $77.44 million in Q1 FY16. Meanwhile, the Company's free cash surged to a record $41.79 million in Q1 FY17 from $19.91 million in last year's comparable quarter.
As on March 31, 2017, the Company had cash and cash equivalents balance of $432.11 million compared to a balance of $389.38 million as on December 31, 2016. The Company reported long-term debt of $303.15 million in its books of accounts as on March 31, 2017, while it had long-term debt amounting to $296.14 million as on December 31, 2016.
Earnings Outlook
In its guidance for Q2 FY17, Tower Semiconductor's expects revenues be $345 million plus or minus 4%, representing a 13% y-o-y revenue growth.
Stock Performance
Tower Semiconductor's share price finished yesterday's trading session at $25.19, marginally down 0.24%. A total volume of 596.82 thousand shares exchanged hands. The stock has soared 38.71% and 114.38% in the last six months and past twelve months, respectively. Furthermore, since the start of the year, shares of the Company have skyrocketed 32.37%. The stock is trading at a PE ratio of 15.11 and currently has a market cap of $2.26 billion.
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SOURCE: Active Wall Street