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What's in Store for Taiwan Semiconductor's (TSM) Q3 Earnings?
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Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) is scheduled to report third-quarter 2022 results on Oct 13.
For the third quarter, TSM anticipates revenues between $19.8 billion and $20.6 billion.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $20.83 billion, suggesting growth of 40% from the year-ago quarter’s reported figure.
The consensus mark for third-quarter earnings is pegged at $1.69 per share, indicating an improvement of 56.5% from the prior-year reported figure. The estimate has moved up 0.6% over the past 30 days.
Taiwan Semiconductor’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters. TSM has a trailing four-quarter earnings surprise of 3.94%, on average.
Taiwan Semiconductor Manufacturing Company Ltd. Price and EPS Surprise
Taiwan Semiconductor’s strong efforts toward innovating technology products are likely to get reflected in its third-quarter results.
Solid demand for TSM’s 7-nanometer (nm) technology is expected to have driven its performance in the to-be-reported quarter.
The strong momentum across advanced technologies, which are defined as 7nm and below, is likely to have benefited Taiwan Semiconductor in the quarter under review.
The impacts of its deepening focus on the full volume production of 5nm are likely to reflect in the third-quarter results. The growing production of 6nm is expected to have contributed to the to-be-reported quarter’s performance.
All these positives are likely to have aided the TSM’s third-quarter wafer revenues.
Taiwan Semiconductor is expected to have benefited from the uptick in chip design activity. The momentum in 5G smartphone launches is expected to have bolstered TSM’s 5G smartphone penetration rate in the quarter under review. TSM is likely to have gained strength from growth in high-performance computing (HPC)-related applications.
Continuous recovery in the automotive sector is likely to have acted as another major tailwind to Taiwan Semiconductor’s business.
Strength across CPU, networking and AI accelerators is likely to have boosted HPC revenues for the quarter to be reported.
The third-quarter results are likely to reflect the impacts of the growing foundry industry and the increasing proliferation of IoT products.
However, the impacts of the pandemic-led adversities are expected to get reflected in the to-be-reported quarter’s results. Weak end-market demand, supply-chain disruptions and geopolitical tensions are expected to have acted as headwinds in the third quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Taiwan Semiconductor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Taiwan Semiconductor has a Zacks Rank #4 (Sell) and an Earnings ESP of -3.74%.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to beat on earnings this season.
Lattice Semiconductor is set to report third-quarter 2022 results on Oct 31. The Zacks Consensus Estimate for LSCC’s earnings is pegged at 44 cents per share, which suggests an increase of 57.1% from the prior year’s reported figure.
Lam Research (LRCX - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank of 3 at present.
Lam Research is scheduled to release first-quarter fiscal 2023 results on Oct 19. The Zacks Consensus Estimate for LRCX’s earnings is pegged at $9.53 per share, suggesting an increase of 14% from the prior year’s reported figure.
Teradyne (TER - Free Report) has an Earnings ESP of +1.45% and is Zacks #3 Ranked at present.
Teradyne is expected to release third-quarter 2022 results on Oct 25. The Zacks Consensus Estimate for TER’s earnings is pegged at $1.04 per share.
Image: Bigstock
What's in Store for Taiwan Semiconductor's (TSM) Q3 Earnings?
Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) is scheduled to report third-quarter 2022 results on Oct 13.
For the third quarter, TSM anticipates revenues between $19.8 billion and $20.6 billion.
The Zacks Consensus Estimate for third-quarter revenues is pegged at $20.83 billion, suggesting growth of 40% from the year-ago quarter’s reported figure.
The consensus mark for third-quarter earnings is pegged at $1.69 per share, indicating an improvement of 56.5% from the prior-year reported figure. The estimate has moved up 0.6% over the past 30 days.
Taiwan Semiconductor’s earnings surpassed the Zacks Consensus Estimate in the trailing four quarters. TSM has a trailing four-quarter earnings surprise of 3.94%, on average.
Taiwan Semiconductor Manufacturing Company Ltd. Price and EPS Surprise
Taiwan Semiconductor Manufacturing Company Ltd. price-eps-surprise | Taiwan Semiconductor Manufacturing Company Ltd. Quote
Factors to Note
Taiwan Semiconductor’s strong efforts toward innovating technology products are likely to get reflected in its third-quarter results.
Solid demand for TSM’s 7-nanometer (nm) technology is expected to have driven its performance in the to-be-reported quarter.
The strong momentum across advanced technologies, which are defined as 7nm and below, is likely to have benefited Taiwan Semiconductor in the quarter under review.
The impacts of its deepening focus on the full volume production of 5nm are likely to reflect in the third-quarter results. The growing production of 6nm is expected to have contributed to the to-be-reported quarter’s performance.
All these positives are likely to have aided the TSM’s third-quarter wafer revenues.
Taiwan Semiconductor is expected to have benefited from the uptick in chip design activity. The momentum in 5G smartphone launches is expected to have bolstered TSM’s 5G smartphone penetration rate in the quarter under review. TSM is likely to have gained strength from growth in high-performance computing (HPC)-related applications.
Continuous recovery in the automotive sector is likely to have acted as another major tailwind to Taiwan Semiconductor’s business.
Strength across CPU, networking and AI accelerators is likely to have boosted HPC revenues for the quarter to be reported.
The third-quarter results are likely to reflect the impacts of the growing foundry industry and the increasing proliferation of IoT products.
However, the impacts of the pandemic-led adversities are expected to get reflected in the to-be-reported quarter’s results. Weak end-market demand, supply-chain disruptions and geopolitical tensions are expected to have acted as headwinds in the third quarter.
What Our Model Says
Our proven model doesn’t conclusively predict an earnings beat for Taiwan Semiconductor this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Taiwan Semiconductor has a Zacks Rank #4 (Sell) and an Earnings ESP of -3.74%.
Stocks to Consider
Here are some companies, which, per our model, have the right combination of elements to beat on earnings this season.
Lattice Semiconductor (LSCC - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Lattice Semiconductor is set to report third-quarter 2022 results on Oct 31. The Zacks Consensus Estimate for LSCC’s earnings is pegged at 44 cents per share, which suggests an increase of 57.1% from the prior year’s reported figure.
Lam Research (LRCX - Free Report) has an Earnings ESP of +0.20% and a Zacks Rank of 3 at present.
Lam Research is scheduled to release first-quarter fiscal 2023 results on Oct 19. The Zacks Consensus Estimate for LRCX’s earnings is pegged at $9.53 per share, suggesting an increase of 14% from the prior year’s reported figure.
Teradyne (TER - Free Report) has an Earnings ESP of +1.45% and is Zacks #3 Ranked at present.
Teradyne is expected to release third-quarter 2022 results on Oct 25. The Zacks Consensus Estimate for TER’s earnings is pegged at $1.04 per share.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.