Taiwan Semiconductor Manufacturing Co (TSMC) reports flat financial results

on Jan 18, 2024
  • This morning, the Taiwan Semiconductor Manufacturing Company (TSMC) reported its FY 2023 financial results.
  • Q4 revenue was flat for the company, and its EPS decreased almost 20 percent.
  • However, the company did manage some small victories, including encouraging margins.

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On January 18th, the latest financial results were announced by Taiwan Semiconductor Manufacturing Company (TSMC).

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As the world’s largest producer of semiconductors, which are used in the making of computers, electric cars and many clean energy solutions, the business could be poised to benefit greatly from investing trends in 2024.

Falling flat at the Q4 finish line

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Nevertheless, earnings fell way below expectations, according to the company in a statement:

Year-over-year, fourth quarter revenue was essentially flat while net income and diluted EPS both decreased 19.3 percent.”

TSMC reported $19.62 billion in net revenue, an increase of over 13 percent, from $17.28 billion in Q3. This was within the firm’s prior guidance of between $18.8 billion and $19.6 billion in revenues.

Nevertheless, it was also a 1.5 percent decrease YoY from Q4 2022’s net revenue.

Net income and earnings

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TSMC also revealed consolidated revenue of NT$625.53 billion, net income of NT$238.71 billion, and diluted earnings per share of NT$9.21 (US$1.44 per ADR unit) for the fourth quarter.

This was up from Q3 2023’s consolidated revenue of NT$546.73 billion, net income of NT$211.00 billion, and diluted earnings per share of NT$8.14 (US$1.29 per ADR unit) for the third quarter ended September 30, 2023.

Good margins

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The company’s gross margin was down marginally, from 54 percent in Q3 to 53 percent in Q4. However, its and operating margin increased marginally, from 41 percent in Q3, to 41.6 percent for Q4.

This was above expectations as per the company’s prior guidance, which remained at 51.5-53.5 percent for gross margin and 39.5 to 41.5 percent for operating margin throughout the 2023 FY.

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