A Preview Of Taiwan Semiconductor's Earnings

Taiwan Semiconductor (NYSE:TSM) is gearing up to announce its quarterly earnings on Thursday, 2024-10-17. Here's a quick overview of what investors should know before the release.

Analysts are estimating that Taiwan Semiconductor will report an earnings per share (EPS) of $1.80.

Taiwan Semiconductor bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Historical Earnings Performance

During the last quarter, the company reported an EPS beat by $0.10, leading to a 3.55% drop in the share price on the subsequent day.

Here's a look at Taiwan Semiconductor's past performance and the resulting price change:

Quarter	Q2 2024	Q1 2024	Q4 2023	Q3 2023
EPS Estimate	1.38	1.31	1.37	1.17
EPS Actual	1.48	1.38	1.44	1.29
Price Change %	-4.0%	-3.0%	1.0%	-2.0%

Market Performance of Taiwan Semiconductor's Stock

Shares of Taiwan Semiconductor were trading at $187.13 as of October 15. Over the last 52-week period, shares are up 101.79%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on Taiwan Semiconductor

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding Taiwan Semiconductor.

The consensus rating for Taiwan Semiconductor is Outperform, based on 3 analyst ratings. With an average one-year price target of $236.67, there's a potential 26.47% upside.

Peer Ratings Comparison

In this comparison, we explore the analyst ratings and average 1-year price targets of Advanced Micro Devices, Qualcomm and Texas Instruments, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Outperform trajectory for Advanced Micro Devices, with an average 1-year price target of $188.69, indicating a potential 0.83% upside.
• The consensus among analysts is an Neutral trajectory for Qualcomm, with an average 1-year price target of $201.5, indicating a potential 7.68% upside.
• Texas Instruments received a Neutral consensus from analysts, with an average 1-year price target of $217.89, implying a potential 16.44% upside.

Comprehensive Peer Analysis Summary

The peer analysis summary presents essential metrics for Advanced Micro Devices, Qualcomm and Texas Instruments, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Company	Consensus	Revenue Growth	Gross Profit	Return on Equity
Broadcom	Buy	47.27%	$8.36B	-2.77%
Advanced Micro Devices	Outperform	8.88%	$2.86B	0.47%
Qualcomm	Neutral	11.15%	$5.22B	8.67%
Texas Instruments	Neutral	-15.65%	$2.21B	6.59%

Key Takeaway:

Taiwan Semiconductor ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

About Taiwan Semiconductor

Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with over 60% market share. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious customer base, including Apple, AMD, and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs. TSMC employs more than 73,000 people.

Taiwan Semiconductor: Delving into Financials

Market Capitalization Analysis: The company's market capitalization is above the industry average, indicating that it is relatively larger in size compared to peers. This may suggest a higher level of investor confidence and market recognition.

Revenue Growth: Taiwan Semiconductor's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 40.07%. This signifies a substantial increase in the company's top-line earnings. In comparison to its industry peers, the company stands out with a growth rate higher than the average among peers in the Information Technology sector.

Net Margin: Taiwan Semiconductor's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 36.8% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): Taiwan Semiconductor's ROE excels beyond industry benchmarks, reaching 6.67%. This signifies robust financial management and efficient use of shareholder equity capital.

Return on Assets (ROA): Taiwan Semiconductor's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 4.21%, the company showcases efficient use of assets and strong financial health.

Debt Management: With a below-average debt-to-equity ratio of 0.27, Taiwan Semiconductor adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for Taiwan Semiconductor visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.