We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
What Awaits Taiwan Semiconductor (TSM) in Q2 Earnings?
Read MoreHide Full Article
Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) is scheduled to report second-quarter 2023 results on Jul 20.
For the second quarter, TSM anticipates revenues between $15.2 billion and $16 billion. The Zacks Consensus Estimate for the same is pegged at $15.52 billion, suggesting a decline of 14.5% from the year-ago quarter’s reported figure.
The consensus mark for second-quarter earnings is pegged at $1.07 per share, indicating a decline of 30.9% from the prior-year reported figure. The consensus estimate has been revised downward by 0.9% in the past seven days.
Taiwan Semiconductor’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average earnings surprise of 4.66%.
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 second-quarter results.
The strong momentum across advanced technologies, which are defined as 7-nanometer (nm) and below, is likely to have benefited Taiwan Semiconductor in the quarter under review.
Strength in TSM’s 7 nm and 6 nm technologies is expected to have driven its performance in the to-be-reported quarter.
The solid adoption of 5 nm technology is likely to have contributed well to the wafer revenues of the company in the second quarter.
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 from growth in high-performance computing-related applications.
Continuous recovery in the automotive sector is likely to have acted as another major tailwind to Taiwan Semiconductor’s business.
The second-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 second quarter.
Furthermore, a low capacity utilization rate, along with high electricity costs in Taiwan, is expected to have constrained the margin expansion of the company in the quarter under review.
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, as elaborated below.
Taiwan Semiconductor has an Earnings ESP of -0.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TSM carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks that, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.
Shopify is scheduled to release second-quarter 2023 results on Aug 2. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 6 cents per share. The company reported a loss of 3 cents per share in the year-ago quarter.
Carrier Global (CARR - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
Carrier is set to report second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for CARR’s earnings is pegged at 76 cents per share, suggesting growth of 10.1% from the prior-year period’s reported figure.
Itron (ITRI - Free Report) has an Earnings ESP of +12.9% and a Zacks Rank #1 at present.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
Image: Bigstock
What Awaits Taiwan Semiconductor (TSM) in Q2 Earnings?
Taiwan Semiconductor Manufacturing Company Ltd. (TSM - Free Report) is scheduled to report second-quarter 2023 results on Jul 20.
For the second quarter, TSM anticipates revenues between $15.2 billion and $16 billion. The Zacks Consensus Estimate for the same is pegged at $15.52 billion, suggesting a decline of 14.5% from the year-ago quarter’s reported figure.
The consensus mark for second-quarter earnings is pegged at $1.07 per share, indicating a decline of 30.9% from the prior-year reported figure. The consensus estimate has been revised downward by 0.9% in the past seven days.
Taiwan Semiconductor’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, with an average earnings surprise of 4.66%.
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 Consider
Taiwan Semiconductor’s strong efforts toward innovating technology products are likely to get reflected in its second-quarter results.
The strong momentum across advanced technologies, which are defined as 7-nanometer (nm) and below, is likely to have benefited Taiwan Semiconductor in the quarter under review.
Strength in TSM’s 7 nm and 6 nm technologies is expected to have driven its performance in the to-be-reported quarter.
The solid adoption of 5 nm technology is likely to have contributed well to the wafer revenues of the company in the second quarter.
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 from growth in high-performance computing-related applications.
Continuous recovery in the automotive sector is likely to have acted as another major tailwind to Taiwan Semiconductor’s business.
The second-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 second quarter.
Furthermore, a low capacity utilization rate, along with high electricity costs in Taiwan, is expected to have constrained the margin expansion of the company in the quarter under review.
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, as elaborated below.
Taiwan Semiconductor has an Earnings ESP of -0.31%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
TSM carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some stocks that, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.
Shopify (SHOP - Free Report) has an Earnings ESP of +86.34% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shopify is scheduled to release second-quarter 2023 results on Aug 2. The Zacks Consensus Estimate for SHOP’s earnings is pegged at 6 cents per share. The company reported a loss of 3 cents per share in the year-ago quarter.
Carrier Global (CARR - Free Report) has an Earnings ESP of +2.33% and a Zacks Rank #3 at present.
Carrier is set to report second-quarter 2023 results on Jul 27. The Zacks Consensus Estimate for CARR’s earnings is pegged at 76 cents per share, suggesting growth of 10.1% from the prior-year period’s reported figure.
Itron (ITRI - Free Report) has an Earnings ESP of +12.9% and a Zacks Rank #1 at present.
Itron is scheduled to release second-quarter 2023 results on Aug 3. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 31 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 7 cents.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.