NEW YORK (TheStreet) -- Taiwan Semiconductor (TSM) rose Thursday after the company reported first-quarter results and issued record second-quarter revenue guidance that surpassed analysts' expectations.
The world's largest contract chip producer posted its eighth consecutive quarter of profit growth with NT$47.9 billion, or $1.59 billion, which surpassed the estimate of NT$43.2 billion from 19 analysts polled by Thomson Reuters. Revenue rose 11.7% year over year to NT$148.22 billion, which beat the Capital IQ consensus estimate of NT$147.78 billion.
Diluted earnings per share were NT$1.85, or 31 cents per ADR unit. Net income and diluted EPS rose 21% year over year.
Taiwan Semiconductor also forecast record revenue for the second quarter in the range of NT$180 billion to T$183 billion, above the Capital IQ consensus estimate of NT$171.75 billion.
Gross margin for the quarter was 47.5%, operating margin was 35.4% and net profit margin was 32.3%.
The stock was up 3.13% to $20.78 at 10:37 a.m. on Thursday.
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Separately, TheStreet Ratings team rates TAIWAN SEMICONDUCTOR MFG CO as a "buy" with a ratings score of A+. TheStreet Ratings Team has this to say about their recommendation:
"We rate TAIWAN SEMICONDUCTOR MFG CO (TSM) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth and increase in stock price during the past year. We feel these strengths outweigh the fact that the company has had sub par growth in net income."