TSMC Q4 Results: Net Profit Decline, Revenue Estimate, and Stock Performance

Taiwan Semiconductor Manufacturing Co. (TSMC) is set to release its fourth-quarter results on Thursday. Here are the key details:

Net Profit Expectations

Analysts surveyed by S&P Global Market Intelligence predict that TSMC will see a 24% decline in net profit, amounting to 224.67 billion new Taiwan dollars (US$7.14 billion) for the quarter ending on December 31. This compares to a net profit of NT$295.90 billion in the same quarter the previous year.

Revenue

Based on monthly revenue reports from the company, TSMC's fourth-quarter revenue is estimated to be NT$625.53 billion.

Stock Performance

TSMC shares have experienced a 2.2% decline so far in 2024. This follows a 13% increase in the final quarter of last year. The stock closed at NT$580.00 on Tuesday.

Key Points to Watch

Earnings Guidance for Q1

TSMC is expected to provide earnings guidance for the first quarter, alongside announcing its fourth-quarter results for 2023. Investors are eager to see any signs of recovery from the recent sales slump.

Operating Profit Margins

Concerns regarding high inflation worldwide have impacted TSMC's operating profit margins. In comparison to the second quarter (42.0%) and the previous year (50.6%), the third-quarter margin weakened to 41.7%. Investors will be closely monitoring any signs of improvement in margins.

Capital Expenditure

TSMC's capital expenditure decreased from US$9.94 billion in the first quarter to US$7.10 billion in the third quarter. Observing the pace of capital spending will provide investors with insights into the company's perspective on future chip demand.