Taiwan Semiconductor Manufacturing's Upcoming Earnings: What You Need to Know

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Taiwan Semiconductor Manufacturing (NYS: TSM) is expected to report Q2 earnings on July 19. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Taiwan Semiconductor Manufacturing's revenues will improve 11.3% and EPS will increase 12.5%.

The average estimate for revenue is $4.26 billion. On the bottom line, the average EPS estimate is $0.27.


Revenue details
Last quarter, Taiwan Semiconductor Manufacturing booked revenue of $3.57 billion. 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
Last quarter, non-GAAP EPS came in at $0.22. 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.

Recent performance
For the preceding 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
The full year's average estimate for revenue is $16.63 billion. The average EPS estimate is $1.05.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,354 members out of 1,399 rating the stock outperform, and 45 members rating it underperform. Among 298 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 292 give Taiwan Semiconductor Manufacturing a green thumbs-up, and six give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Taiwan Semiconductor Manufacturing is hold, with an average price target of $14.80.

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The article Taiwan Semiconductor Manufacturing's Upcoming Earnings: What You Need to Know originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is 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 may not 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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