[ad_1]
Shares of Taiwan Semiconductor Manufacturing Company Limited TSM were advancing in premarket trading on Thursday.
What Happened: The Hsinchu, Taiwan-based company reported fourth-quarter earnings that beat expectations despite a revenue miss.
More importantly, the company guided to below-consensus first-quarter revenue, citing continued end-market weakness and inventory correction.
The positive stock reaction is attributable to the company’s comments on the earnings call.
See Also: Best Technology Stocks
Needham analyst Charles Shi noted that the company expects low-single-digit earnings growth for 2023, implying a revenue bottom in the second quarter.
The company also reduced its 2023 Capex guidance to $32 billion-$36 billion and called for a narrowing of margins amid a rise in R&D expenses, the analyst said.
The company also expects N7 utilization to only mildly recover in 2023, he added. “We believe TSMC’s 2003 revenue guidance is within or slightly above buy-side expectations,” Shi said.
Price Action: In premarket trading on Thursday, TSMC shares rose 1.97%, to $83.39, according to Benzinga Pro data.
[ad_2]
Image and article originally from www.benzinga.com. Read the original article here.