TSMC Expected to Post 4.1% Net Profit Gain in First Quarter -- Earnings Preview

Dow Jones04-17

By Sherry Qin

Taiwan Semiconductor Manufacturing Co. is scheduled to report first-quarter results on Thursday. Here's what you need to know:

NET PROFIT FORECAST: TSMC is expected to post a 4.1% rise in net profit to 215.40 billion new Taiwan dollars (US$6.62 billion) for the first quarter after three consecutive quarters of net profit decline, according to a FactSet poll of 28 analysts. That compares with NT$206.99 billion in net profit a year earlier.

REVENUE: TSMC's first-quarter revenue rose 16.5% on year to NT$592.64 billion after its March revenue gained 34% on year, it said last week.

WHAT TO WATCH:

-- TSMC is expected to offer earnings guidance for the second quarter. Investors are closely watching management's comment on the sustainability of the AI-enthusiasm driven demand and the impact of the earthquake in Taiwan on April 3 on its production and sales.

-- TSMC won a $6.6 billion subsidy from the U.S. government to expand its investment in an Arizona complex last week. Investors will be looking for more information from the management on the grant and the third fab it plans to build.

-- Intel reported steeper operating losses for its manufacturing unit for 2023. Investors will focus on TSMC's margin trends as the two companies are close rivals in the chip sector.

-- TSMC's stocks have surged 31% in the first quarter as global enthusiasm over artificial intelligence has supported the shares of the world's largest contract chip maker, who counts Apple, Nvidia, and Qualcomm as clients. Investors will focus on the company's guidance regarding any payouts.

Write to Sherry Qin at sherry.qin@wsj.com

(END) Dow Jones Newswires

April 17, 2024 00:27 ET (04:27 GMT)

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TSMC Expected to Post 4.1% Net Profit Gain in First Quarter -- Earnings Preview

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