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Dow Jones NewsJan 15, 3:41 AM UTC
DJ TSMC's Fourth-Quarter Net Profit Likely Jumped 55% -- Earnings Preview
By Sherry Qin
Taiwan Semiconductor Manufacturing Co. is scheduled to report fourth-quarter results on Thursday. Here is what you need to know:
NET PROFIT: The Taiwanese chip maker is expected to post a 55% rise in quarterly net profit to 370.64 billion New Taiwan dollars, equivalent to US$11.24 billion, according to the consensus estimate of 26 analysts in a FactSet poll. That would compare with NT$238.7 billion in the year-earlier period.
REVENUE: Fourth-quarter revenue is estimated at NT$868.46 billion, or US$26.33 billion, based on monthly figures provided by the company. That would be in line with TSMC's guidance of US$26.1 billion-US$26.9 billion but top its revenue of NT$625.53 billion in the year-earlier period. Solid revenue in the final quarter of 2024 brought the full-year figure to NT$2.894 trillion, up 34% from 2023, when it recorded a decline amid an inventory glut.
TSMC's Taipei-listed shares rose 12% in the fourth quarter, taking its 2024 gains to 81% amid robust demand for the foundry's advanced chips.
WHAT TO WATCH:
--AI CHIP CURBS: The U.S.'s latest chip restrictions will likely have little impact on TSMC's AI chip demand, though the company's management could provide more clarity in the postresults conference call, according to Citi analysts. TSMC's solid technology and execution should help it withstand potential order and share-price volatility in the near term, they wrote in a research note.
--2025 GUIDANCE: The chip maker could guide for 20% to 25% annual sales growth in U.S. dollar terms, driven by continued global investment in AI infrastructure, Deutsche Bank analyst Robert Sanders said in a recent research note. He expects the Taiwanese company's sales growth to be tied closely to Nvidia, which alone could account for 18% of TSMC's sales in 2025. Citi, meanwhile, noted that most AI chips are expected to transition to the 3-nanometer process from late this year. Higher average selling prices due to the technology upgrade could further support TSMC's earnings growth into 2026, Citi analysts said. They expect TSMC's 2025 gross margin guidance to be in the high 50% range.
Write to Sherry Qin at sherry.qin@wsj.com
(END) Dow Jones Newswires
January 14, 2025 22:41 ET (03:41 GMT)
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