2024-04-18 02:19:54 ET
Today, one of this earnings season’s most eagerly anticipated companies released their latest financial results.
The Taiwan Semiconductor Manufacturing Company (TWSE: 2330, NYSE: TSM) reported its Q1 results for 2024 on April 18th, during the Taiwanese afternoon.
The company announced net income of NT$225.49 billion (approximately $6.98 billion),
Earnings
In terms of earnings, the company announced diluted earnings per share of NT$8.70 (or $1.38 per ADR unit) for the first quarter ended March 31, 2024.
This was up from an EPS of $1.31 last year.
Revenue and net income
Year-over-year, first quarter revenue increased 16.5% while net income and diluted EPS both increased 8.9%.
However, compared to fourth quarter 2023, first quarter results represented a 5.3% decrease in revenue and a 5.5% decrease in net income.
Gross margin for the quarter was 53.1%, operating margin was 42.0%, and net profit margin was 38.0%.
TSM investor relations: beating expectations?
For many, the TSMC earnings are a reflection of how well investors fervour for all things AI-related will translate into the 2024 financial year.
Expectations were high ahead of the earnings. Reuters expected profits to rise by 5% for the quarter, 1 while Bloomberg
While TSMC beat expectations for a Q1 performance, it failed to scale the same heights that its Q4 2023 earnings did. Does this mean that demand for the super-stock may be cooling?
Implications for global chipmaking
Nevertheless, the earnings did represent a plausible bellwether for global chip demand – and this seems to be healthy, according to today’s statement.
In the first quarter, TSMC said that shipments of 3-nanometer accounted for 9% of total wafer revenue; 5-nanometer accounted for 37%; 7-nanometer accounted for 19%. Advanced technologies, defined as 7- nanometer and more advanced technologies, accounted for 65% of total wafer revenue.
Compared with Q1 of 2023, this was a significant increase. During Q1 of 2023, 5-nanometer process technology contributed 31% of wafer revenue in the first quarter, while 7-nanometer accounted for 20%. Advanced Technologies, defined as 7-nanometer and below, accounted for 51% of wafer revenue.
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