Wall Street Kicks Off Strong Earnings Season, TSMC and UnitedHealth Report Mixed Results

The fourth quarter of 2024 has seen a strong start to the earnings season, with several major companies reporting their financial results. Two notable companies that have reported mixed results are Taiwan Semiconductor Manufacturing Company (TSMC) and UnitedHealth Group (UnitedHealth). Let's dive into their earnings reports and analyze the key takeaways.



Taiwan Semiconductor Manufacturing Company (TSMC)

TSMC, the world's largest contract chipmaker, reported a record-breaking quarter with revenue of NT$868.46 billion (US$26.36 billion) and net income of NT$374.68 billion (US$11.4 billion). The company's strong performance was driven by the high demand for advanced chips used in AI applications, particularly its 3-nanometer and 5-nanometer technologies. TSMC's revenue in the December quarter rose 38.8% from a year earlier, while net income rose 57%.

However, TSMC faces several challenges in the geopolitical landscape, such as U.S. export controls on China and increased competition from rivals in South Korea, Japan, and mainland China. These factors could potentially impact TSMC's future performance.

UnitedHealth Group (UnitedHealth)

UnitedHealth, one of the leading American suppliers of healthcare products and services, reported a better-than-expected profit in the final quarter of 2024. The company's net income rose slightly to NT$5.54 billion (US$1.7 billion) in the quarter, while adjusted results totaled NT$6.81 per share. UnitedHealth's revenue climbed about 7% to NT$100.8 billion (US$3.1 billion), which missed expectations.

UnitedHealth's earnings report was overshadowed by the tragic shooting of its CEO, Brian Thompson, outside a New York City hotel. The incident highlighted the growing frustration among Americans over healthcare access and insurance profits.

In conclusion, the earnings season has kicked off with a strong performance from TSMC, driven by the high demand for advanced chips. UnitedHealth, on the other hand, reported mixed results, with a better-than-expected profit but a revenue miss. Both companies face challenges in the geopolitical landscape and increased competition, which could impact their future performance. As the earnings season continues, investors will be closely watching the reports from other major companies to gauge the overall health of the market.