Net Profit Forecast
According to a poll of analysts by S&P Global Market Intelligence, Taiwan Semiconductor Manufacturing Co. (TSMC) is expected to report a 27% drop in net profit for the second quarter. The estimated net profit is 173.17 billion new Taiwan dollars (US$5.58 billion), compared to 237.03 billion new Taiwan dollars in the same quarter last year.
Revenue Forecast
TSMC’s second-quarter revenue is estimated to have fallen by 10% compared to the previous year. Based on the monthly revenues disclosed by the company, the revenue for this quarter is expected to be around 480.84 billion new Taiwan dollars.
Key Points to Watch
Sales Trends
In the first quarter, TSMC experienced a decline of 27% in smartphone revenue and a 14% decrease in high-performance computing revenue. Investors are closely monitoring the sales trends of these key segments. The Chief Financial Officer, Wendell Huang, has suggested that customers will continue making inventory adjustments in the second quarter.
Guidance for the Third Quarter
Investors are eagerly anticipating TSMC’s earnings guidance for the third quarter, which will be announced alongside the second-quarter results. They are particularly interested in any indications of a recovery from the recent sales slump.
Capital Expenditure (CAPEX)
TSMC’s capital expenditure in the first quarter was reported at US$9.94 billion, slightly down from US$10.82 billion in the previous quarter of 2022. Investors are paying close attention to the pace of capital spending as it provides insights into management’s outlook on future chip demand.
