To The Moon

Earnings Calendar (13Oct25)

Upcoming Corporate Earnings Outlook: Q3 2025

The start of the Q3 2025 earnings season is imminent, with a primary focus on the financial sector and key global technology players this week.

Financial Sector Focus

The major catalyst for market movement will be the reporting from prominent financial institutions. Key banking and financial giants scheduled to report include:

• Major Commercial and Investment Banks: J.P. Morgan, Goldman Sachs, Wells Fargo, and Citi.

• Asset Management and Services: BlackRock and State Street.

• Financial Services: American Express.

The performance of these institutions will provide critical insights into loan growth, capital market activity, and the broader financial health of the economy.

Key Technology and Industry Reports

Beyond the banks, several other globally significant corporations are set to release their results:

• Semiconductors: Taiwan Semiconductor Manufacturing Company (TSMC), a critical barometer for the global technology supply chain, is scheduled to provide an update.

• Semiconductor Equipment: ASML, a leading supplier of photolithography systems, will offer a view into capital expenditure trends within the chip industry.

• Healthcare and Diagnostics: Abbott will report on performance in the medical device and diagnostics sector.

• Aviation: United Airlines will provide data reflecting trends in passenger demand and operational costs within the travel industry.

Taiwan Semiconductor Manufacturing Company Limited (TSMC) Overview

TSMC is the world’s leading semiconductor foundry, headquartered in Hsinchu City, Taiwan, and incorporated in 1987.

Core Business and Operations

TSMC and its subsidiaries manufacture, package, test, and sell integrated circuits and other semiconductor devices globally. The company operates across major regions including Taiwan, China, Europe, the Middle East, Africa, Japan, and the United States.

Its primary service is providing a diverse range of wafer fabrication processes, including advanced technologies for:

• Complementary Metal-Oxide-Semiconductor (CMOS) logic

• Mixed-signal and Radio Frequency (RF) circuits

• Embedded memory and Bipolar CMOS mixed-signal processes

Strategic Activities

Beyond manufacturing, TSMC’s strategic activities encompass mask manufacturing, offering extensive customer and engineering support services, and engaging in investment activities in technology start-up companies.

Product Applications

TSMC’s fabricated products are essential components utilised across five primary platforms: High-Performance Computing (HPC), Smartphones, Internet of Things (IoT), Automotive, and Digital Consumer Electronics.

Analyst and Technical Consensus for TSMC

The prevailing market sentiment for Taiwan Semiconductor Manufacturing Company (TSMC) is highly positive:

• Analyst Sentiment: The consensus rating among financial analysts is a “Strong Buy,” reflecting high confidence in the company’s future performance.

• Technical Recommendation: Independent technical analysis also recommends a “Buy” rating for the stock.

• Price Target: The consensus target price is $307.65, which suggests a potential upside of 9.62% from the current trading price.

This alignment across both fundamental and technical assessments indicates a robust outlook for the stock.

Financial Review: Taiwan Semiconductor Manufacturing Company (TSMC)

This summary provides a professional analysis of TSMC’s key financial metrics, sorted by profitability, growth, and balance sheet health, covering the period from 2015 to 2024.

Profitability and Valuation

TSMC demonstrates exceptional long-term efficiency and cash generation. The 10-year median gross profit margin stands at a very strong 51.1%. Even more impressive is the 10-year median free cash flow margin of 23.5%, highlighting the company’s significant ability to generate cash after capital expenditures. Currently, the company’s valuation, as reflected by the earnings ratio (P/E), is 31.9, a metric that warrants careful consideration by investors.

Revenue and Earnings Growth

The company has delivered significant growth across its core financial statements over the past nine years.

• Revenue expanded substantially, growing from $25.7 billion in 2015 to $88.8 billion in 2024.

• This top-line success translated into robust bottom-line performance: gross profit grew from $12.5 billion to $49.8 billion, and operating profit increased from $9.8 billion to $40.5 billion.

• Reflecting this success at the shareholder level, Earnings Per Share (EPS) grew from $1.78 in 2015 to $6.86 in 2024.

• The company also initiated and grew its dividends per share, starting at $0.95 in 2016 and reaching $2.30 in 2024.

Financial Stability (Balance Sheet)

TSMC maintains a highly conservative and stable financial position. The debt-to-assets ratio is exceptionally low at 0.1, indicating that the vast majority of the company’s assets are financed by equity, reflecting a low-leverage and robust balance sheet.

News about TSMC (Summary from Gemini)

TSMC’s Q3 2025 was dominated by exceptional financial performance fueled by the global Artificial Intelligence (AI) boom.

The company reported a 30% year-over-year revenue surge (approximately $32.5 billion), beating market forecasts. This strength, driven by massive demand for HPC and AI chips, led TSMC to raise its full-year 2025 revenue growth forecast to 30%. Operations relied heavily on advanced 3nm and 5nm process nodes.

Despite strong results, the company acknowledged rising geopolitical pressure, particularly concerning US-China export controls affecting its older nodes in Nanjing, alongside ongoing global supply chain constraints.

Investment Consideration: TSMC Earnings and Outlook

Based on consensus forecasts for the upcoming earnings report, Taiwan Semiconductor Manufacturing Company (TSMC) presents a compelling case for portfolio inclusion.

Earnings Forecast and Recommendation

Current projections anticipate Earnings Per Share (EPS) of $2.62 on **revenue of $31.99 billion for the reporting period. This performance outlook supports the established positive analyst and technical sentiment.

Given TSMC’s dominant position in advanced node technology and its critical role in the High-Performance Computing (HPC) and AI sectors, we recommend initiating further due diligence to assess its suitability for the investment portfolio.

Key Considerations for Due Diligence

While the financial outlook is strong, any investment decision must be weighed against broader market factors:

1. AI Market Perception: Investors must prudently evaluate the surrounding “AI bubble” commentary and its potential impact on valuations, even for industry leaders.

2. Macroeconomic and Market Outlook: The final decision should incorporate a comprehensive review of the prevailing market outlook, including capital expenditure trends and any shifts in the global technology supply chain, to ensure the investment thesis remains robust.

@TigerStars

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