U.S. Movers: CSX, Discover Financial, Lucid Group, TSMC

Scott Peters
17 Oct, 2024
New York City

Taiwan Semiconductor Manufacturing Company increased 12% to $210.36 after the company reported sharply higher sales and earnings in the third quarter. 

Revenue increased 36% to $23.5 billion, and gross margin expanded to 57.8% from 54.3% a year ago. 

Net income in the quarter jumped to NT 325.08 billion, or $10.05 billion, from NT 210.8 billion a year ago. 

Gross margin for the quarter was 57.8%, operating margin was 47.5%, and net profit margin was 42.8%. 

In the third quarter, shipments of 3-nanometer accounted for 20% of total wafer revenue; 5-nanometer accounted for 32%; 7-nanometer accounted for 17%. 

Advanced technologies, defined as 7-nanometer and smaller chip technologies, accounted for 69% of total wafer revenue. 

The company guided fourth-quarter revenue to fall between $26.1 billion and $26.9 billion. 

Lucid Group dropped 14.9% to $2.80 after the electric vehicle company announced a stock offering to sell 262.5 million. 

The company also said its major stockholder, Ayar Third Investment, and an affiliate of the Saudi Arabia-controlled sovereign wealth fund have agreed to purchase 374.7 million shares in a concurrent private placement. 

CSX Corp. declined 5% to $33.71 after the railroad transportation company reported weaker-than-expected quarterly results. 

Revenue in the third quarter increased 1% to $3.62 billion from $3.57 billion, net income increased 8% to $894 million from $828 million, and diluted earnings per share rose to 46 cents from 41 cents a year ago. 

Total volume of 1.59 million units for the quarter was 3% higher from a year ago, but lower fuel surcharges and a reduction in other revenue negatively impacted overall revenue.

Discover Financial Services increased 1.4% to $149.64 after the company reported higher-than-expected third quarter results. 

Total revenue net of interest expense increased 10% to $4.5 billion from $4.0 billion, net income rose 41% to $965 million from $683 million, and diluted earnings per share advanced 42% to $3.69 from $2.59 a year ago. 

The total net charge-off rate was 4.86%, up 134 basis points from a year ago and up 3 basis points from the previous quarter "reflecting continued seasoning of recent vintages and the student loan accounting classification change." 

The credit card net charge-off rate was 5.28%, up 125 basis points from a year ago and down 27 basis points from the previous quarter.