Chipmaker TowerJazz revenue outlook misses estimates, shares drop

[October 29, 2018]  By Tova Cohen

TEL AVIV (Reuters) - Israeli chip manufacturer TowerJazz posted lower third-quarter net profit on Monday and said fourth-quarter revenue would miss expectations, hurt by overall market weakness, sending its shares tumbling.

The logo of Israeli chipmaker TowerJazz is seen at their offices in Migdal HaEmek, northern Israel September 13, 2017. REUTERS/Ronen Zvulun/File Photo

TowerJazz, which specialises in analogue chips used in cars, medical sensors and power management, reported diluted earnings per share of 37 cents excluding one-time items in the quarter, down from 59 cents a year earlier. Revenue fell to $323 million from $355 million.

It was forecast to earn adjusted EPS of 40 cents on revenue of $335 million, according to I/B/E/S data from Refinitiv.

It now expects fourth-quarter revenue to come in at 5 percent above or below $340 million, having said in July it was targeting revenue in the period of $360-$380 million.

Analysts forecast revenue of $364.5 million in the fourth quarter.

TowerJazz's Tel Aviv-listed shares were down 16.4 percent at midday.

(Reporting by Tova Cohen; Editing by Jan Harvey)

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