Taiwan Semiconductor Manufacturing Beats on Both Top and Bottom Lines

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Taiwan Semiconductor Manufacturing (NYS: TSM) reported earnings on April 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended March 31 (Q1), Taiwan Semiconductor Manufacturing beat slightly on revenues and beat expectations on earnings per share.

Compared with the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.


Margins dropped across the board.

Revenue details
Taiwan Semiconductor Manufacturing notched revenue of $3.57 billion. The 20 analysts polled by S&P Capital IQ predicted revenue of $3.52 billion on the same basis. GAAP reported sales were 0.1% lower than the prior-year quarter's $3.58 billion.

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Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $0.22. The three earnings estimates compiled by S&P Capital IQ averaged $0.19 per share. GAAP EPS of $0.04 for Q1 were 20% lower than the prior-year quarter's $0.05 per share.

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Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 47.7%, 130 basis points worse than the prior-year quarter. Operating margin was 33.6%, 360 basis points worse than the prior-year quarter. Net margin was 31.7%, 270 basis points worse than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $4.00 billion. On the bottom line, the average EPS estimate is $0.22.

Next year's average estimate for revenue is $16.25 billion. The average EPS estimate is $0.97.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,367 members out of 1,411 rating the stock outperform, and 44 members rating it underperform. Among 338 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 334 give Taiwan Semiconductor Manufacturing a green thumbs-up, and four 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 $14.80.

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At the time this article was published Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings. He is the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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