Text size
TSMC forecast revenue ahead of expectations for the three months ending in June.
Sam Yeh/AFP/Getty Images
Continued demand for chips in everything from advanced computing to cars helped
Taiwan Semiconductor Manufacturing
beat estimates for first-quarter earnings on Thursday —and strong sales are expected to continue.
TSMC(ticker: TSM) notched a profit of $1.40 a share on revenue of $17.6 billion in the first three months of 2022. Sales rose 36% year over year and 12% since the last quarter.
The results soundly beat what was expected by Wall Street. Analysts had estimated TSMC would report earnings per share of $1.35 on revenue of $16.7 billion.
Even better is TSMC’s forecast for the current quarter. The company expects revenue in the three months ending in June to be between $17.6 billion and $18.2 billion. The consensus estimate among analysts was for second-quarter sales to be $17.3 billion.
U.S.-listed shares of TSMC rose more than 2% in U.S. premarket trading. The shares remain down more than 21% this year, outpacing a near 14% decline for the tech-heavy
Nasdaq Composite
index.
“Our first quarter business was supported by strong [high-performance computing] and Automotive-related demand,” Wendell Huang, the group’s chief financial officer, said in a statement.“Moving into second quarter 2022, we expect our business to continue to be supported by HPC and Automotive-related demand, partially offset by smartphone seasonality.”
Write to Jack Denton at jack.denton@dowjones.com