Taiwan Semiconductor Manufacturing
The 10-second takeaway
For the quarter ended March 31 (Q1), Taiwan Semiconductor Manufacturing beat slightly on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share increased significantly. GAAP earnings per share grew.
Gross margins expanded, operating margins dropped, net margins dropped.
Taiwan Semiconductor Manufacturing tallied revenue of $4.45 billion. The 17 analysts polled by S&P Capital IQ predicted sales of $4.37 billion on the same basis. GAAP reported sales were 24% higher than the prior-year quarter's $3.57 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 $0.26. The four earnings estimates compiled by S&P Capital IQ forecast $0.24 per share. Non-GAAP EPS of $0.26 for Q1 were 18% higher than the prior-year quarter's $0.22 per share. GAAP EPS of $0.05 for Q1 were 25% 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 70.9%, much better than the prior-year quarter. Operating margin was 33.5%, 10 basis points worse than the prior-year quarter. Net margin was 29.8%, 190 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.19 billion. On the bottom line, the average EPS estimate is $0.32.
Next year's average estimate for revenue is $20.47 billion. The average EPS estimate is $1.03.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,370 members out of 1,417 rating the stock outperform, and 47 members rating it underperform. Among 311 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 305 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 outperform, with an average price target of $18.08.
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