Taiwan Semiconductor Manufacturing
The 10-second takeaway
For the quarter ended June 30 (Q2), Taiwan Semiconductor Manufacturing met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue improved and GAAP earnings per share didn't move.
Margins improved across the board.
Taiwan Semiconductor Manufacturing booked revenue of $4.29 billion. The 20 analysts polled by S&P Capital IQ hoped for revenue of $4.27 billion on the same basis. GAAP reported sales were 12% higher than the prior-year quarter's $3.83 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.27. The four earnings estimates compiled by S&P Capital IQ averaged $0.27 per share. GAAP EPS of $0.05 were the same as the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.6%, 260 basis points better than the prior-year quarter. Operating margin was 36.5%, 220 basis points better than the prior-year quarter. Net margin was 32.7%, 20 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.56 billion. On the bottom line, the average EPS estimate is $0.28.
Next year's average estimate for revenue is $16.51 billion. The average EPS estimate is $1.05.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,354 members out of 1,399 rating the stock outperform, and 45 members rating it underperform. Among 301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 295 give Taiwan Semiconductor Manufacturing a green thumbs-up, and six give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Taiwan Semiconductor Manufacturing is hold, with an average price target of $15.22.
New mobile devices are changing the game, and potential profitability, at many semiconductor companies. Some will fail, some will tread water, and those in the right devices will shine. Where does Taiwan Semiconductor Manufacturing fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.
- Add Taiwan Semiconductor Manufacturing to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.