TSMC (TSM) in Red Following Q2 Results/Guidance; Competitive Stance Remains Strong, Says Goldman

July 18, 2013 10:49 AM EDT Send to a Friend
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Shares of Taiwan Semiconductor Manufacturing (NYSE: TSM) declined on Thursday after the company reported Q2 results and guidance. Despite weakness, Goldman noted the company's strong competitive stance.

Commenting Goldman's Donald Lu said, "TSMC reported 2Q13 EPS of NT$2.0, +6%/+5% vs. GSe and Bloomberg consensus, mostly due to higher-than-expected revenue (+1.3%) and non-op gains. 3Q13 guidance for revenue/GPM/OPM of NT$161-164bn/47- 49%/35-37% is slightly below GSe of NT$167bn/49.8%/38.4% and consensus at NT$164bn/49.1%/37.5% respectively."

"While TSMC's 3Q13 is slightly below our estimates, its outlook is in line with our expectation of a moderate inventory correction in 2H13. We are encouraged by TSMC's strong competitive stance and execution at 28nm, 20nm and 16nm. TSMC's 2014 capex indication is below our estimates, but we note that TSMC has raised its capex by US$1bn so far in 2013."

Goldman Sachs has a Buy rating on Taiwan Semiconductor Manufacturing Co. Ltd. (NYSE: TSM) with a price target of $21.20.

For an analyst ratings summary and ratings history on Taiwan Semiconductor Manufacturing Co. Ltd. click here. For more ratings news on Taiwan Semiconductor Manufacturing Co. Ltd. click here.

Shares of Taiwan Semiconductor Manufacturing Co. Ltd. closed at $18.45 yesterday.


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