Earnings Insight - Taiwan Semiconductor Manufacturing

LONDON, November 3, 2014 /PRNewswire/ --

Investor-Edge.com has issued free post-earnings review on Taiwan Semiconductor Manufacturing Co. Ltd (NYSE: TSM). On October 16, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on http://www.investor-edge.com/FreeReports to read our free earnings review on Taiwan Semiconductor Manufacturing Co. Ltd (TSMC). During Q3 FY14, TSMC's revenue and net earnings surged 28.6% and 46.9%, respectively, on a Y-o-Y basis, and diluted EPS increased NT$0.94 from the preceding year quarter. Our free coverage report can be accessed at:

http://www.investor-edge.com/register

Earnings Overview 

During Q3 FY14, TSMC reported net revenue of NT$209.05 billion, compared to NT$162.58 billion in the same period last year. The company's shipments of 20-nanometer process technology accounted for 9% of total wafer revenues and 28-nanometer accounted for 34% of total wafer revenues during the quarter. Further, advanced technologies, defined as 28-nanometer and 20-nanometer technologies, accounted for 43% of total wafer revenues. The free research on TSM can be downloaded as in PDF format at:

http://www.Investor-Edge.com/TSMFreeReport

The company's gross profit margin increased to 50.5% in Q3 FY14, from 48.5% in the prior-year quarter. Further, operating income for Q3 FY14 increased to NT$84.43 billion, or 40.4% of net revenue, from NT$59.62 billion, or 36.7% of net revenue, in the year-ago quarter. TSMC's net income broadened to NT$76.30 billion, or NT$2.94 per diluted share, in Q3 FY14, from NT$51.94 billion, or NT$2.00 per diluted share, in the corresponding quarter last year.

Lora Ho, SVP and CFO of TSMC, said that in Q3 FY14 the company saw record revenue on account of strong demand for its advanced technologies. She added that TSMC began volume shipments of 20-nanometer wafers following two years of meticulous preparation, which reached 9% of its Q3 wafer revenue. Ms. Ho further stated that the company expects that 20-nanometer will continue to ramp up fast and will account for more than 20% of Q4 wafer revenue. Sign up and read the free analyst's notes on TSM at:

http://www.Investor-Edge.com/TSM-03112014

Commenting on the company's guidance for Q4 FY14, Ms. Ho said that management expects revenue to be between NT$217 billion and NT$220 billion, based on TSMC's current business outlook and exchange rate assumption of US$1 to NT$30.31. She further added that the company's gross profit margin is expected to be between 48% and 50%, and operating profit margin is expected to be between 38% and 40% for Q4 FY14.

Stock Performance 

On the day of the earnings release, October 16, 2014, shares in TSMC ended the session at $20.72, up 3.24%. The stock has witnessed mostly a positive momentum since then. On the last close, Friday, October 31, 2014, the company's stock finished at $22.02, 4.31% above its previous day's closing price, after vacillating between $21.69 and $22.13. A total of 19.62 million shares were traded, which was much above its three months average volume of 11.90 million shares. Over the previous three trading sessions and last one month, the company's shares have gained 1.99% and 8.53%, respectively. Also, the stock has surged 26.26% from the beginning of 2014. Shares of TSMC closed above their 50-day and 200-day moving averages of $20.73 and $20.07, respectively. Furthermore, the stock has a Relative Strength Index (RSI) of 64.46. Visit Investor-Edge and access the latest research on TSM at:

http://www.Investor-Edge.com/TSMEarningsCoverage

Sneak Peek to Corporate Insider Trading 

In the last one month, TSMC has not reported any share transactions by insiders to the U.S. Securities and Exchange Commission (SEC). Complimentary in-depth research on TSM is available at:

http://www.Investor-Edge.com/TSMInsiderTrading

About Investor-Edge.com 

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