Earnings Report Boosts Tower Semiconductor on Nasdaq Despite Cut to Profits
Tower lost around 50% of its stock valuation over the past 12 months
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The difference is in large part due to an $82 million income tax benefit Tower received in 2017 following an Israeli deferred tax asset realization, and a $13 million tax benefit received following the U.S Tax reform.
For the fourth quarter of 2018, Tower reported revenues of $333.6 million, compared to $357.6 in the same period in 2017, but a net profit of $38 million compared to $147.2 million, and EPS of $0.37 compared to $1.5.
The company’s earnings fell within the forecasted range, said in an interview with Calcalist Tower CEO Russell Ellwanger, who added that the industry is now seeing new blood especially in the 300mm wafer sector.
Tower forecasts revenues of $310 for the first quarter of 2019, with an upward or downward range of 5%. Previous to the publication of the report, analyst consensus for the first quarter was $313 million.