Tower Semiconductor's Stock Down 21% Following Underwhelming Third Quarter Results

The stock of Israel-headquartered chip maker Tower Semiconductor Ltd. has dropped 21.24% on Nasdaq trading at 13.98$ per stock by market close Monday after it filed its third quarter 2018 financial reports earlier that day. Tower reported revenues of $323 million for the quarter ending Sept. 30, down 9% compared with the same period last year, and 3.5% short of prior estimates. Tower, commonly known as TowerJazz, also reported net profits of $34 million for the third quarter of 2018, compared with $55 million for the same period in 2017. The company slashed $20 million off of its July estimate of revenues for the fourth quarter of the year, putting the expected revenues at $340 million.

Tower CEO Russell Ellwanger . Photo: Eran Yofi Cohen