Tower Semiconductor Ltd reported a fiscal second-quarter 2024 revenue decline of 1.7% year-on-year to $351.2 million, beating the analyst consensus estimate of $350.1 million.

The Israel-based contract chipmaker's adjusted EPS of $0.53 beat the analyst consensus estimate of $0.45.

Gross profit was $86.9 million, up 0.5% Y/Y. The margin improved by 53 bps to 24.8%. Operating profit of $55.1 million climbed 9% Y/Y.

The company generated $113 million in operating cash flow and held $1.23 billion in cash and equivalents as of June-end.

Outlook: Tower Semiconductor ( TSEM ) expects third-quarter revenue of $370 million, with an upward or downward range of 5% versus the $369.9 million consensus.

Tower Semiconductor ( TSEM ) has been asked by the Indian government to revise its chip fabrication unit proposal to include a technology partner offering advanced nodes for manufacturing, Economic Times reported in May.

The government prefers Tower Semiconductor ( TSEM ) to focus on 28 nm, 40 nm, 55 nm, and 65 nm nodes instead of just the proposed 180 nm node plan.

Tower Semiconductor ( TSEM ) has submitted an $8-10 billion proposal for a unit in India, potentially making it one of their largest, but faces legal challenges following the fallout with joint venture partner Next Orbit Ventures.

Tower Semiconductor ( TSEM ) stock gained 18% in the last 12 months.

TSEM Stock Prediction 2024

Equity research can be a valuable source of information for learning about a company's fundamentals. Analysts create financial models based on the fundamentals and expected future earnings of a company to arrive at a price target and recommendation for the stock.

Shares of Tower Semiconductor ( TSEM ) have an average 1-year price target of $49.67, representing an expected upside of 20.31%.

Because of differences in assumptions, analysts can arrive at very different price targets and recommendations. No analysts have bearish recommendations on Tower Semiconductor ( TSEM ), while 3 analysts have bullish ratings. The street high price target from Susquehanna is $55.0, while the street low from Craig-Hallum is $44.0.

TSEM Price Action: Tower Semiconductor ( TSEM ) shares traded lower by 2.46% at $40.27 premarket at the last check Wednesday.