Taiwan Semiconductor Manufacturing Co. is scheduled to report fourth-quarter results on Thursday. Here is what you need to know:
NET PROFIT: TSMC is expected to post a 24% drop in net profit to 224.67 billion new Taiwan dollars (US$7.14 billion) for the quarter ended Dec. 31, according to a poll of analysts by S&P Global Market Intelligence. That compares with NT$295.90 billion in net profit a year earlier.
REVENUE: Fourth-quarter revenue was at NT$625.53 billion, based on the sum of monthly revenue disclosed by the company.
The stock has fallen 2.2% so far in 2024 through Tuesday, following a 13% rise in the final quarter of last year. Shares closed at NT$580.00 on Tuesday.
WHAT TO WATCH:
–TSMC is expected to offer earnings guidance for the first quarter, in addition to its results for the fourth quarter of 2023. Investors are closely watching for any signs of a recovery from the recent sales slump.
–Third-quarter operating profit margin deteriorated to 41.7% from 42.0% in the second quarter and 50.6% a year earlier. Investors are focusing on any signs of improvement in margins as businesses globally deal with high inflation.
–TSMC spent US$7.10 billion in capital expenditure in the third quarter, down from US$8.17 billion in the second quarter and US$9.94 billion in the first quarter. Investors are paying attention to the pace of capital spending to gauge the management’s views on chip demand going forward.