Equity Briefing: ASOS, TSMC and US banks

Online fashion retailer ASOS is scheduled to release a trading update this morning, semiconductor firm TSMC will publish second-quarter results, and Morgan Stanley, US Bancorp and the Bank of NY Mellon round-off the earnings season for US banks later today.

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ASOS

Online fashion retailer ASOS will report a trading statement covering the four months to the end of June this morning. Expectations are high following the company’s record first-half performance that saw revenue and profits surge. The update will focus on revenue figures but should also provide some commentary on margins and the outlook for the remaining two months of the financial year. The biggest threats to growth going forward are any loss of sales from rivals reopening physical stores and the fragile economic outlook for its 20-something clientele. Investors will also be cautious about how higher levels of investment will impact its profitability going forward.

Taiwan Semiconductor

TSMC, the world’s leading semiconductor foundry churning out chips for companies spanning Apple to Intel, will release second-quarter results later today. The company’s guidance is targeting net revenue of between $12.9 billion and $13.2 billion, and analysts are expecting it to report toward the top end of that range. That would compare to the $10.38 billion revenue booked the year before. Analysts are expecting diluted earnings per American Depositary Receipt of $0.93 compared to $0.78 the year before.

US banks

US banks have smashed expectations since the start of the second-quarter earnings season thanks to the release of funds set aside for bad loans and the improving economic picture. Morgan Stanley, US Bancorp and Bank of NY Mellon will round off the week when they report results before US markets open today. Analysts are expecting Morgan Stanley’s diluted EPS to drop to $1.65 from $1.95 the year before following its record results in the first quarter. US Bancorp is expected to book diluted EPS of $1.14 compared to just $0.41 the year before. Meanwhile, Bank of NY Mellon is forecast to report EPS of $1.00, broadly flat from $1.01 the year before.

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