Taiwan Semiconductor Manufacturing Co. (TSMC) is set to reveal its third-quarter financial results on Thursday. Here are the key details:
Net Profit Forecast
Analysts polled by S&P Global Market Intelligence predict that TSMC will report a 33% decrease in net profit, amounting to 189.46 billion New Taiwan dollars (US$5.87 billion) for the quarter ending on September 30. This is in comparison to the net profit of NT$280.87 billion in the same period last year.
Revenue Estimate
The estimated third-quarter revenue is presumed to have declined by 11% compared to the previous year, reaching NT$546.73 billion. This estimation is based on the cumulative monthly revenue disclosed by the company.
Points of Interest
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Outlook: Apart from reporting third-quarter results, TSMC is anticipated to provide its earnings guidance for the fourth quarter. Investors are particularly interested in indications of recovery following the recent sales slump.
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Capital Expenditure (CAPEX): In the first quarter, TSMC’s capital expenditure amounted to US$9.94 billion, which decreased to US$8.17 billion in the second quarter. The pace of capital spending will be closely monitored by investors as it reflects the company’s perspective on future chip demand.
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Margin: TSMC experienced a 7.1 percentage point decline in operating-profit margin during the second quarter compared to the previous year, settling at 42.0%. The margin trends are being closely observed by investors given the global challenges manufacturers face due to elevated costs of materials and parts.
For more information, contact Kosaku Narioka.