Taiwan Semiconductor Manufacturing
The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Taiwan Semiconductor Manufacturing met expectations on revenues and met expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly and GAAP earnings per share grew.
Margins grew across the board.
Taiwan Semiconductor Manufacturing logged revenue of $4.52 billion. The 19 analysts polled by S&P Capital IQ hoped for revenue of $4.52 billion on the same basis. GAAP reported sales were 31% higher than the prior-year quarter's $3.46 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 $0.28. The four earnings estimates compiled by S&P Capital IQ averaged $0.28 per share. GAAP EPS of $0.06 for Q4 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 47.2%, 250 basis points better than the prior-year quarter. Operating margin was 35.2%, 370 basis points better than the prior-year quarter. Net margin was 31.7%, 150 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $4.41 billion. On the bottom line, the average EPS estimate is $0.25.
Next year's average estimate for revenue is $20.25 billion. The average EPS estimate is $1.15.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,372 members out of 1,418 rating the stock outperform, and 46 members rating it underperform. Among 339 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 335 give Taiwan Semiconductor Manufacturing a green thumbs-up, and four 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 $16.57.
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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. The Motley Fool has no position in any of the stocks mentioned. 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.