Proactive Investors - Taiwan Semiconductor Mfg. Co. Ltd. (ADR) (NYSE:TSM) (TSMC) is expected to report another quarterly drop in profit for the fourth quarter on Thursday but analysts are positive that demand for semiconductor chips will pick up later this year.
According to analysts, the chipmaker is expected to post a profit of US$7.21 billion (T$226.4 billion) compared to T$295.9 billion in the year-ago quarter.
Earnings per share are expected to decline by 25.3% to US$1.36, according to Zacks Consensus Estimate.
Revenue is expected to decline by 4.7% to US$19 million.
TSMC has guided 4Q revenue in the range of US$18.8 to US$19.6 million, a gross margin of 51.5% to 53.5% and an operating margin of 39.5% to 41.5%.
Investors will be focused on TSMC’s full-year outlook when it hands down its 4Q results on Thursday at 1am Eastern Time/2pm Taiwan time.
Analysts believe demand for semiconductors will accelerate after a seasonal slowdown in the first quarter as smartphone and computer makers run down their inventories.