Taiwan Semiconductor Jen-Chau Huan CFO Says We Expect Q2 Revenue To Be Between $19.6B-$20.4B, Represents A 6% Sequential Increase And 27.6% YoY Increase At The Midpoint. Gross Margin Is Expected To Be Between 51%-53%, Operating Margin Between 40%-42%. In Q2 We Will Need To Accrue The Tax On The Undistributed Retained Earnings. Tax Rate Will Be Slightly Above 19%. The Tax Rate Will Then Fall Back To 13%-14% Level In Q3 And Q4 And The FY Tax Rate Will Be Between 15%-16% Compared To 14.5% YoY
Portfolio Pulse from Benzinga Newsdesk
Taiwan Semiconductor's CFO, Jen-Chau Huan, forecasts Q2 revenue to be between $19.6B-$20.4B, marking a 6% sequential and 27.6% YoY increase. Gross margin is expected to range from 51%-53%, with operating margin between 40%-42%. The company will accrue tax on undistributed retained earnings, leading to a slightly above 19% tax rate for Q2, before reducing to 13%-14% in Q3 and Q4. The FY tax rate is projected to be between 15%-16%, up from 14.5% YoY.
April 18, 2024 | 3:22 pm
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Taiwan Semiconductor anticipates a significant Q2 revenue increase to $19.6B-$20.4B, a 27.6% YoY growth, with gross margins between 51%-53% and operating margins at 40%-42%. The tax rate will temporarily increase to slightly above 19% due to accruals on undistributed retained earnings, before returning to 13%-14% in the latter half of the year.
The positive revenue growth forecast, along with a strong gross and operating margin, indicates a bullish outlook for TSM in the short term. The temporary tax rate increase is a minor concern but is expected to normalize in the second half of the year, minimizing long-term impact.
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