Taiwan Semiconductor Manufacturing
The 10-second takeaway
For the quarter ended Sep. 30 (Q3), Taiwan Semiconductor Manufacturing beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins expanded across the board.
Taiwan Semiconductor Manufacturing logged revenue of $4.82 billion. The 18 analysts polled by S&P Capital IQ wanted to see net sales of $4.76 billion on the same basis. GAAP reported sales were 38% higher than the prior-year quarter's $3.49 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 $0.32. The five earnings estimates compiled by S&P Capital IQ predicted $0.30 per share. GAAP EPS of $0.06 for Q3 were 50% higher than the prior-year quarter's $0.04 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.8%, 680 basis points better than the prior-year quarter. Operating margin was 37.2%, 750 basis points better than the prior-year quarter. Net margin was 34.9%, 640 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.45 billion. On the bottom line, the average EPS estimate is $0.26.
Next year's average estimate for revenue is $17.25 billion. The average EPS estimate is $1.07.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,358 members out of 1,406 rating the stock outperform, and 48 members rating it underperform. Among 308 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 301 give Taiwan Semiconductor Manufacturing a green thumbs-up, and seven 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 $14.83.
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