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What's in Store for Taiwan Semiconductor's (TSM) Q1 Earnings?
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Taiwan Semiconductor Manufacturing Company (TSM - Free Report) is scheduled to report first-quarter 2021 results on Apr 15.
For first-quarter 2021, it anticipates revenues between $12.7 billion and $13 billion.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $12.83 billion, suggesting growth of 24.5% from the year-ago quarter.
Further, the consensus mark for first-quarter earnings is pegged at 91 cents per share, indicating an improvement of 21.3% from the prior-year reported figure.
Taiwan Semiconductor Manufacturing Company Ltd. Price and Consensus
Taiwan Semiconductor’s strong efforts toward innovation of technology products are likely to get reflected in first-quarter results.
Solid demand for the 7-nanometer (nm) technology is expected to have driven the company’s performance in the to-be-reported quarter.
Furthermore, strong momentum across advanced technologies (16nm and higher) is likely to have benefited Taiwan Semiconductor during the quarter under review.
Additionally, its deepening focus on full volume production of 5nm is likely to get reflected in first-quarter results. Also, the growing production of 6nm is expected to have contributed to its performance in the to-be-reported quarter.
Consequently, all these positives are likely to get reflected in the company’s first-quarter wafer revenues.
Further, Taiwan Semiconductor is expected to have benefited from an uptick in chip design activity. The momentum in 5G smartphone launches might have bolstered the company’s 5G smartphone penetration rate in the quarter under review. Further, it is likely to have gained strongly from an uptick in high-performance computing (HPC)-related applications.
Additionally, strength across CPU, networking and AI accelerators is likely to get reflected in HPC revenues for the quarter to be reported.
Also, the first-quarter results are likely to reflect the growing foundry industry and increasing proliferation of IoT products.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Taiwan Semiconductor this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Taiwan Semiconductor has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results:
Verizon Communications Inc. (VZ - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank #3.
NXP Semiconductors N.V. (NXPI - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
Image: Bigstock
What's in Store for Taiwan Semiconductor's (TSM) Q1 Earnings?
Taiwan Semiconductor Manufacturing Company (TSM - Free Report) is scheduled to report first-quarter 2021 results on Apr 15.
For first-quarter 2021, it anticipates revenues between $12.7 billion and $13 billion.
The Zacks Consensus Estimate for first-quarter revenues is pegged at $12.83 billion, suggesting growth of 24.5% from the year-ago quarter.
Further, the consensus mark for first-quarter earnings is pegged at 91 cents per share, indicating an improvement of 21.3% from the prior-year reported figure.
Taiwan Semiconductor Manufacturing Company Ltd. Price and Consensus
Taiwan Semiconductor Manufacturing Company Ltd. price-consensus-chart | Taiwan Semiconductor Manufacturing Company Ltd. Quote
Factors to Note
Taiwan Semiconductor’s strong efforts toward innovation of technology products are likely to get reflected in first-quarter results.
Solid demand for the 7-nanometer (nm) technology is expected to have driven the company’s performance in the to-be-reported quarter.
Furthermore, strong momentum across advanced technologies (16nm and higher) is likely to have benefited Taiwan Semiconductor during the quarter under review.
Additionally, its deepening focus on full volume production of 5nm is likely to get reflected in first-quarter results. Also, the growing production of 6nm is expected to have contributed to its performance in the to-be-reported quarter.
Consequently, all these positives are likely to get reflected in the company’s first-quarter wafer revenues.
Further, Taiwan Semiconductor is expected to have benefited from an uptick in chip design activity. The momentum in 5G smartphone launches might have bolstered the company’s 5G smartphone penetration rate in the quarter under review. Further, it is likely to have gained strongly from an uptick in high-performance computing (HPC)-related applications.
Additionally, strength across CPU, networking and AI accelerators is likely to get reflected in HPC revenues for the quarter to be reported.
Also, the first-quarter results are likely to reflect the growing foundry industry and increasing proliferation of IoT products.
What Our Model Says
Our proven model does not conclusively predict an earnings beat for Taiwan Semiconductor this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That is not the case here as you will see below.
Earnings ESP: The company has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: Currently, Taiwan Semiconductor has a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results:
Waters Corporation (WAT - Free Report) has an Earnings ESP of +2.94% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Verizon Communications Inc. (VZ - Free Report) has an Earnings ESP of +0.80% and a Zacks Rank #3.
NXP Semiconductors N.V. (NXPI - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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