Market News

TSM Delivers Better-than-Expected Q4 Earnings

Taiwan Semiconductor Mfg. Co. (NYSE: TSM) reported earnings of $1.82 per American Depository Share (ADS), surpassing analysts’ estimates of $1.79.

The chipmaker generated Q4 revenues of $19.93 billion, up 26.7% year-over-year missing Street estimates by $990 million.

When it comes to its outlook for the first quarter of 2023, TSM now expects revenues between $16.7 billion and $17.5 billion based on the exchange rate assumption of $1 equivalent to $NT30.7. The company had generated revenues of $17.57 billion in the same period a year back.

Wendell Huang, VP and CFO of TSMC commented, “Moving into first quarter 2023, as overall macroeconomic conditions remain weak, we expect our business to be further impacted by continued end market demand softness, and customers’ further inventory adjustment.”

The company anticipates a Q1 operating profit margin in the range of 41.5% to 43.5%. TSM also slashed its FY23 capex to be between $32 billion and $36 billion versus $36.3 billion in 2022.

Analysts remain bullish about TSM stock with a Strong Buy consensus rating based on four Buys and one Hold.

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