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TSMC Profit Surpasses Expectations on Resilient Phone Demand
Tim Culpan
tculpan
January 14, 2016 — 3:38 PM AEST Updated on January 14, 2016 — 4:24 PM AEST
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Chipmaker benefited from move toward more advanced technology
Forecasts first-quarter sales broadly in line with estimates
Taiwan Semiconductor Manufacturing Co. posted earnings that beat analyst estimates as sales of iPhones and other devices proved more resilient than expected and the chipmaker rolled out more advanced technology.
Fourth-quarter net income fell 9 percent to NT$72.8 billion ($2.2 billion), beating the NT$68.5 billion average of 26 analysts’ estimates compiled by Bloomberg.
TSMC, which makes chips for Apple Inc.’s latest iPhone, earlier posted sales for the quarter that beat estimates as a move to more sophisticated manufacturing technology helped boost margins and counteract a global slowdown in demand. Apple in October forecast record revenue for the December quarter, fueled by customer upgrades and sales in China, even with the Asian country’s economic slowdown.
Chinese government data released this week suggested the iPhone fared better than expected in the final quarter of 2015. Shipments of smartphones not using Google Inc.’s Android software, the vast majority of which would be iPhones, increased by about 33 percent from a year earlier, according to analysts’ calculations.
Sales Forecast
“We think TSMC’s wafer shipment will regain traction on a quarterly basis in 2Q16 thanks to regaining most allocation for Apple A10 chip orders,” Ethan Chen, an analyst with Sinopac Financial Holdings, said in a Jan. 12 report.
The Taiwanese company on Thursday forecast sales of NT$198 billion to NT$201 billion in the first quarter, compared with analyst estimates for NT$200.2 billion.
TSMC’s most advanced, higher-margin 16-nanometer and 20-nanometer technologies accounted for a combined 24 percent of sales in the quarter, the company said.
It expects gross margin, a key metric that assesses revenue less the cost of goods sold including depreciation, to be 47 percent to 49 percent this quarter, compared with estimates for 47.6 percent.
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Stocks May Fall More - Then It'll Be Time to Buy, Goldman Says
Camila Russo
CamiRusso
January 12, 2016 — 10:00 AM AEST Updated on January 13, 2016 — 3:04 AM AEST
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Goldman Report: Is It Time to Buy European Stocks?
Valuations for European equities look attractive versus U.S.
U.S. shares nearing end of long bull market, bank says
The China-led rout that is sending shock waves through global markets may get worse, and if it does, that’s when investors should turn back to equities, says Goldman Sachs Group Inc.’s Christian Mueller-Glissmann.
The managing director for portfolio strategy is neutral on global stocks -- and has been since August -- but he says any further drops would create opportunities to invest. He prefers European shares because they’re cheaper than U.S. ones, and the region’s companies have bright earnings-growth prospects, according to him.
“After such a sharp correction, from a valuation point of view, you start to build that buffer that you didn’t have at the beginning of December,” Mueller-Glissmann said in a phone interview from London last week. “You do have the potential to deliver high single-digit earnings growth. Europe should do well.”
The Stoxx Europe 600 Index had its worst week in more than four years and fell further on Monday, sending its valuation to 14.2 times estimated earnings, the lowest since last January. It rebounded 0.9 percent on Tuesday.
But the European Central Bank is supporting the economy, and that’s poised to help the region’s companies -- companies that trade at a level that’s about 8 percent cheaper than U.S. stocks.
Goldman Sachs sees the Stoxx 600 rallying 18 percent in the next 12 months from yesterday’s close, about double the gains it estimates for the Standard & Poor’s 500 Index. Last week’s rout changed nothing to its outlook.
The bank is more bullish than others on European earnings. It forecasts profit growth of 8 percent for Stoxx 600 companies this year, compared with 5.7 percent for the average analyst projection compiled by Bloomberg. In 2017, it sees earnings rising 10 percent.
And how to weather the turmoil? Invest in financial, staples and health-care companies, as well as those that are more linked to Europe’s economic recovery, Mueller-Glissmann says. Those may be more shielded from the storm in global equities, according to him.
While he favors European shares for their return potential, Mueller-Glissmann isn’t a bear on U.S. equities. Goldman Sachs recommends investors keep their allocation to American stocks, even as it says they’re nearing the end of a long bull market.
“We don’t anticipate a U.S. recession or a global recession, and that’s required to put the U.S. into a more prolonged bear market,” he said. “At some point, valuation will get support.”
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Anyone know when RS happening?
Correct. It's not the amount. It's about managements reliability. It's like Olympus. They've been hiding the truth to the shareholders and in the end the shareholders were the ones who lost the most. I would like to know if I'm holding a bag of gold or crap with EMXC. The only way to know is managements word.
Dividends equals trust.
Good email.
She still has not replied to my emails. Both times.
I wish she would stop wasting time doing those worthless blogs, unless she has something substantial to report. And get some work done!
With you with this one. Worthless blog.
Go EMXC!
You're right. Dividends is proof.
Betting the farm.
Your exactly right. Words are meaningless without action.
That would be a GREAT Pr
Starting to get exciting. Game changer if the Detroit lab test are good.
Sorry to here about your stroke. I too suffered a stroke at 31. I wish I had millions to give away like you did. Trying to get there, but hard being disabled.
My mistake
If you made that much money,why only free membership in ihub. Lol.
Hope your right.
Exactly right on the money. Without divs won't move. Talk is CHEAP!
Absolutely right
Divies are an indicator that EMXC is keeping their word.
One thing is for sure. Without divis EMXC is not going anywhere anytime soon. With divis sky is the limit.
New news out
Interesting pr. Without more information, don't know how beneficial this deal is for EMXC.
Good question. He always saying the same thing.
Sloppy. What took SEC & Emax so long to react. Hope price drops more so could pick up more shares.
Well put. Hope you're right.
Let the flood gates open
Charts. There is charts. I thought it was about EMXC and what they plan to do.
How long have you been trading?
What have you found?