Stock Alert: Towerjazz Declines As Sales, Earnings Drop

(RTTNews) - Shares of chipmaker Towerjazz(TSEM) are sinking more than 7% on Tuesday after the company reported significant decrease in its fourth-quarter profit.

Net profit for the fourth quarter decreased to $21 million, or $0.19 per share, from $38 million, or $0.36 per share in the prior-year quarter. Analysts polled by Thomson Reuters were expecting earnings of $0.25.

Revenues for the quarter fell to $306 million from $334 million in the comparable quarter last year. The company attributed the decline to the Panasonic contract announced in March last year. Analysts had a consensus estimate of $312.07 million.

TowerJazz expects revenues for the first quarter of 2020 to be $300 million, with an upward or downward range of 5%. Analysts foresee $300.9 million.

TSEM is currently trading at $22.24 and has been in a range of $14.46- $25.80 over the past 52 weeks.