What's in Store for Taiwan Semiconductors' (TSM) Q3 Earnings?
Taiwan Semiconductor Manufacturing Company Ltd. TSM is scheduled to report third-quarter 2023 results on Oct 19.
For the third quarter, TSM anticipates revenues between $16.7 billion and $17.5 billion. The Zacks Consensus Estimate for the same is pegged at $16.64 billion, suggesting a decline of 17.7% from the year-ago quarter’s reported figure.
The consensus mark for third-quarter earnings is pegged at $1.16 per share, indicating a decline of 35.2% from the prior-year reported figure. The consensus estimate has been revised upward 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 5.46%.
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
The company’s strong efforts toward innovating technology products are likely to be reflected in its third-quarter results.
Its strength in 7nm and 6nm technologies is expected to have driven TSM’s 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.
Continuous investments in leading-edge and specialty technologies are anticipated to have aided the company’s quarterly performance.
The focus on diversifying its customer base and expanding into new applications, such as HPC (high-performance computing) and smartphone applications, is anticipated to have contributed well in the quarter to be reported.
However, the impacts of softness in the consumer and data center-related end markets are likely to be reflected in the to-be-reported quarterly results.
Lower capacity utilization due to semiconductor cyclicality and increased competition from new entrants in the semiconductor market are likely to have been concerning.
Mounting expenses associated with setting up and operating semiconductor fabrication facilities overseas and rising inflationary pressure are expected to have acted as other headwinds 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 +0.86%. 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 the soon-to-be-reported quarterly results.
Itron ITRI has an Earnings ESP of +14.39% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Itron is scheduled to release third-quarter 2023 results on Nov 2. The Zacks Consensus Estimate for ITRI’s earnings is pegged at 51 cents per share, suggesting a jump of 121.7% from the prior-year quarter.
Alphabet GOOGL has an Earnings ESP of +3.06% and a Zacks Rank #3 at present.
Alphabet is scheduled to release third-quarter 2023 results on Oct 24. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.45 per share, reflecting growth of 36.8% from the year-ago quarter.
Carrier Global CARR has an Earnings ESP of +5.31% and a Zacks Rank #3 at present.
Carrier is set to report third-quarter 2023 results on Oct 26. The Zacks Consensus Estimate for CARR’s earnings is pegged at 78 cents per share, suggesting growth of 11.4% from the prior-year fiscal period’s reported figure.
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