Earnings Results: Taiwan Semi shares rise after earnings, sales beat forecasts

by | Jul 14, 2022 | Stock Market

Shares of Taiwan Semiconductor Manufacturing Co. rose on Thursday after the third-party silicon wafer manufacturer reported forecast-beating earnings and sales in its June-ending quarter. TSMC
TSM,
+2.77%

2330,
+0.96%
reported earnings of $1.55 per American depositary receipt compared with 93 cents per ADR in the year-ago period. Revenue rose to $18.16 billion from $13.29 billion in the year ago period. TSMC had estimated revenue between $17.6 billion and $18.2 billion.

Analysts surveyed by FactSet had forecast earnings of $1.44 per ADR and revenue of $17.68 billion. Shares of the company rose 3% in Taipei. Read: Are chip stocks set up for a short squeeze, or just more declines? Wall Street doesn’t seem sure Breaking it down by technology, leading-edge 5-nanometer orders made up 21% of sales, compared with 18% in the year-ago period, while 7-nm orders made up 30% of sales from a previous 31%. Nanometer, or “nm,” denotes the size of each transistor that goes on a computer chip, the general rule being that smaller transistors are faster and more efficient in using power. By end-use, smartphone customers made up 38% of revenue compared with a year-ago 42%, while high-performance computing customers made up 43% of sales, compared with 39% in the year-ago period. Demand for smartphones and PCs has weakened from a year ago, although analysts expect data-center demand to remain resilient. The chip shortage, a year ago: The chip crunch marches on, but one sector could be in store for relief Automotive customers contributed to 5% of TSM’s revenue, compared with 4% in last year’s June-ending quar …

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