Taiwan Semiconductor Manufacturing
The 10-second takeaway
For the quarter ended June 30 (Q2), Taiwan Semiconductor Manufacturing met expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded significantly.
Margins grew across the board.
Taiwan Semiconductor Manufacturing booked revenue of $5.19 billion. The 18 analysts polled by S&P Capital IQ predicted a top line of $5.17 billion on the same basis. GAAP reported sales were 21% higher than the prior-year quarter's $4.29 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 $0.33. The five earnings estimates compiled by S&P Capital IQ anticipated $0.32 per share. Non-GAAP EPS of $0.33 for Q2 were 22% higher than the prior-year quarter's $0.27 per share. GAAP EPS of $0.07 for Q2 were 40% higher than the prior-year quarter's $0.05 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 49.0%, 20 basis points better than the prior-year quarter. Operating margin was 37.0%, 50 basis points better than the prior-year quarter. Net margin was 33.2%, 50 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.44 billion. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $20.09 billion. The average EPS estimate is $1.21.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,371 members out of 1,420 rating the stock outperform, and 49 members rating it underperform. Among 301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 296 give Taiwan Semiconductor Manufacturing a green thumbs-up, and five 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 $19.20.
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