Earnings Review and Free Research Report: TSMC’s Q3 Bottom-Line Outperformed Expectations
LONDON, UK / ACCESSWIRE / October 25, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM) ("TSMC"), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=TSM, following the Company's posting of its financial results on October 19, 2017, for the third quarter of the fiscal year 2017 (Q3 FY17). The Hsinchu, Taiwan-based Company's earnings per ADR fell 7.1% y-o-y. The earnings per ADR figures, however, outperformed market consensus estimates. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:
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Earnings Reviewed
TSMC reported revenues of NT$252.11 million in Q3 FY17, which came in below the NT$260.41 million recorded in Q3 FY16. Meanwhile, the Company's revenues in US Dollars grew 1.5% to US$8.32 million y-o-y during Q3 FY17.
The integrated circuits chipmaker's net income attributable to shareholders of the parent Company came in at NT$89.93 million, or NT$3.47 per diluted share, for Q3 FY17 compared to NT$96.76 million, or NT$3.73 per diluted share, in Q3 FY16. Meanwhile, the Company's earnings per diluted ADR came in at NT$17.34 (US$0.57) during Q3 FY17 compared to NT$18.66 (US$0.59) per ADR in Q3 FY16. Wall Street had expected the Company to report net income of $0.56 per diluted ADR.
Operating Metrics
During Q3 FY17, the Company posted a gross profit of NT$125.88 million compared to NT$132.05 million in the year-ago same period. The Company's gross margin came in at 49.9% in Q3 FY17 versus 50.7% in the prior year's comparable quarter. The Company spent NT$21.05 million on research and development in Q3 FY17 compared to NT$18.72 million in Q3 FY16. Moreover, the Company's total operating expenses was NT$27.54 million during the reported quarter compared to NT$25.84 million in Q3 FY16.
For the reported quarter, income from operations stood at NT$98.06 million, which came in lower than the NT$106.26 million reported in the year-ago corresponding quarter. Additionally, the Company's operating margin stood at 38.9% in Q3 FY17 versus 40.8% in Q3 FY16.
Cash Flow and Balance Sheet
In the quarter ended September 30, 2017, net cash provided by operating activities fell to NT$116.78 million from NT$126.41 million in Q3 FY16. Meanwhile, the Company's capital expenditure in Q3 FY17 was NT$61.71 million compared to NT$103.78 million in the last year's same quarter.
As on September 30, 2017, the Company had a cash and cash equivalents balance of NT$408.08 million compared to a balance of NT$463.97 million as on September 30, 2016. The Company reported interest-bearing debts of NT$205.32 million in its books of accounts as on September 30, 2017, versus NT$227.92 million as on September 30, 2016.
Earnings Outlook
In its guidance for Q4 FY17, TSMC expects revenues to be between US$9.10 billion and US$9.20 billion. The gross profit margin is forecasted to be in the range of 48% and 50% for the upcoming quarter, whereas, the operating profit margin is anticipated to lie between 37% and 39% for the quarter ending December 31, 2017. Furthermore, the Company expects the full year FY17 capital budget to be about US$10.8 billion.
Stock Performance
On Tuesday, October 24, 2017, the stock closed the trading session at $41.32, marginally up 0.27% from its previous closing price of $41.21. A total volume of 4.10 million shares have exchanged hands. Taiwan Semiconductor Manufacturing's stock price soared 14.08% in the last three months, 25.21% in the past six months, and 31.55% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have skyrocketed 43.72%. The stock is trading at a PE ratio of 18.45 and has a dividend yield of 2.81%. At Tuesday's closing price, the stock's net capitalization stands at $206.28 billion.
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