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Taiwan Semi (TSM) Q4 2022 earnings results miss revenue expectations on slight EPS beat

The company predicts a continuation of market demand softness entering Q1 2023.

Morgan Shaver

January 12, 2023 11:11 AM

Bloomberg, CNBC

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Taiwan Semiconductor Manufacturing (TSM) recently shared its earnings result for Q4 2022. Included in the report is data that reflects the company’s earnings missed revenue expectations amid a slight EPS beat. EPS came in at $1.82 per share, $0.02 higher than estimates of $1.80 with EPS whispers of $1.81 per share. Revenue was reported at $19.93 million, increased 26.7 percent year-over-year but falling below expectations of $20.25 billion and decreasing 1.5 percent from the previous quarter.

Gross margin for Q4 was 62.2 percent with an operating margin of 52 percent and net profit margin of 47.3 percent. Shipments of 5-nanometer accounted for 32 percent of “total wafer revenue” with 7-nanometer accounting for 22 percent. Also included in the report are statements from the company’s Chief Financial Officer who shared cautious guidance moving forward. This includes predictions of continued market demand softness entering the first quarter of 2023.

“Our fourth quarter business was dampened by end market demand softness, and customers’ inventory adjustment, despite the continued ramp-up for our industry-leading 5nm technologies,” said Wendell Huang, VP and Chief Financial Officer of TSMC. “Moving into first quarter 2023, as overall macroeconomic conditions remain weak, we expect our business to be further impacted by continued end market demand softness, and customers’ further inventory adjustment.”

Taiwan Semiconductor’s predictions for Q1 2023 include revenue between $16.7 and $17.5 billion (USD) with a gross profit margin expected between 53.5 and 55.5 percent. For more on Taiwan Semiconductor’s earnings for Q4 2022 and predictions for Q1 2023, be sure to read through the full report.

Looking to catch up with more financial news? Check out some of our previous coverage as well including how Berkshire had created a new $4 billion Taiwan Semi (TSM) position during Q3, and how Taiwan Semiconductor may expand to Japan as tensions with China grow.

Morgan Shaver

Senior Editor

Morgan is a writer from the frozen wastelands of Maine who enjoys metal music, kpop, horror, and indie games. They're also a Tetris fanatic who's fiercely competitive in games like Tetris 99... and all games in general. But mostly Tetris. You can follow Morgan on Twitter @Author_MShaver.