Shareholders may have noticed that Tour Semiconductor Ltd. (NASDAQ: TSEM) filed its quarterly results around the same time last week. The initial response was not positive, with stocks falling 7.1% to US $ 26.48 last week. Revenue of US $ 347 million was on target, although statutory earnings per share (EPS) fell below expectations at US $ 0.26, missing estimates by 2.8%. Analysts usually update their forecasts with each earnings report, and we can judge from their estimates whether their view of the business has changed or if there are new concerns to consider. So we’ve collected the latest post-profit statutory consensus estimates to see what might be in store for next year. NasdaqGS: TSEM Profits and Revenue Growth May 15, 2021
Based on the latest results, the most recent consensus for Tower Semiconductor of five analysts is revenue of US $ 1.44 billion in 2021, which, if achieved, would represent a significant increase of 9.6% of its sales over the past 12 months. Earnings per share are expected to jump 34% to US $ 1.17. Yet before the latest results, analysts were forecasting revenue of US $ 1.42 billion and earnings per share (EPS) of US $ 1.18 in 2021. Consensus analysts do not appear to have seen in these results anything that would have changed their point of view. on the company, given that there have been no major changes in their estimates.
There has been no change in revenue or profit estimates or in the price target of US $ 36.68, suggesting that the company has lived up to expectations in its recent result. It might also be instructive to look at the range of analysts’ estimates, to gauge how different outliers are from the average. Currently, the most bullish analyst values ââTower Semiconductor at US $ 40.00 per share, while the most bearish price at US $ 32.00. Despite this, with a relatively close cluster of estimates, it appears analysts are quite confident in their valuations, suggesting that Tower Semiconductor is an easy-to-predict company or that analysts are all using similar assumptions.
Another way to look at these estimates is in the context of the bigger picture, such as how the forecast compares to past performance and whether the forecast is more or less bullish relative to other companies in the industry. Analysts are certainly expecting growth from Tower Semiconductor to accelerate, with an annualized growth forecast of 13% through the end of 2021 ranking favorably against a historic growth of 1.2% per year over the course of the year. over the past five years. Compare that with other companies in the same industry, which are expected to increase their revenues by 8.4% per year. It seems obvious that while the outlook for growth is brighter than in the recent past, analysts also expect Tower Semiconductor to grow faster than the industry as a whole.
The bottom line
The most important thing to remember is that there has been no major change in sentiment, with analysts once again confirming that the company is performing according to their previous earnings per share estimates. Fortunately, there were no major changes to the revenue forecast, with the business still expected to grow faster than the industry as a whole. The consensus price target stood at US $ 36.68 as the latest estimates were not sufficient to impact their price targets.
That said, the company’s long-term earnings trajectory is much bigger than next year. At Simply Wall St, we have a full range of analyst estimates for Tower Semiconductor through 2023, and you can view them for free on our platform here.
However, you should always think about the risks. Concrete example, we have spotted 1 warning sign for Tower Semiconductor you must be aware.
This Simply Wall St article is general in nature. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in the mentioned stocks.
Do you have any feedback on this item? Are you worried about the content? Get in touch with us directly. You can also send an email to the editorial team (at) simplywallst.com.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.