Taiwan Semiconductor (TSM) Stock Drops Despite Q3 Beats

  • Taiwan Semiconductor (TSM) stock is slipping after posting earnings for Q3 2022.
  • That’s despite it beating out earnings per share and revenue estimates.
  • Instead, its outlook seems to be dragging shares lower today.
TSM Stock - Taiwan Semiconductor (TSM) Stock Drops Despite Q3 Beats

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Taiwan Semiconductor (NYSE:TSM) stock is on the move Thursday after the company released earnings results for the third quarter of 2022.

That earnings report starts with diluted earnings per share of NT$10.83. That’s a positive outcome compared to Wall Street’s estimate of NT$10.40. That represents a year-over-year increase of 79.8% compared to NT$6.03

Adding to that is the semiconductor company’s revenue of NT$613.14 billion. This is another beat for the company next to analysts’ estimate of NT$608.6 billion. It’s also a 47.9% growth from its revenue of NT$414.67 billion reported in the third quarter of 2021.

Taiwan Semiconductor attributes the positive performance for the quarter to its 5nm technologies. The company says it saw strong demand from this segment with its making up 28% of total wafer revenue.

Q4 Outlook Drags Down TSM Stock

Wendell Huang, vice president and CFO of Taiwan Semiconductor, said the following about its outlook:

Moving into fourth quarter 2022, we expect our business to be flattish, as the end market demand weakens, and customers’ ongoing inventory adjustment is balanced by continued ramp-up for our industry-leading 5nm technologies.

It’s worth noting that chip stocks have had a rough time lately. Especially those operating out of China. This comes as President Joe Biden’s administration places restrictions on chip exports to the country.

TSM stock is down 2.2% as of Thursday morning and is down 51.4% since the start of the year.

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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Article printed from InvestorPlace Media, https://investorplace.com/2022/10/taiwan-semiconductor-tsm-stock-drops-despite-q3-beats/.

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