1Q25 Revenue: $25.53B, +35.3% YoY, miss estimates by $190M
1Q25 GAAP EPADR: $2.12, beat estimates by $0.06
2Q25 Guidance: Expect 2Q25 revenue to be between $28.40bn to $29.20bn, midpoint of $28.8bn above consensus of $27.22bn; Expect gross profit margin to be between 57.0% to 59.0%; Expect operating profit margin to be between 47.0% to 49.0%; Expect capital expenditure for this year to be between $38bn and $42bn.
Comment: Taiwan Semiconductor Manufacturing Co. (TSMC) delivered stronger-than-expected earnings and issued an upbeat outlook for the year, driven by continued robust demand for AI-related applications. The company noted that it has not observed any shift in customer behaviour despite ongoing uncertainty surrounding U.S. tariffs. Looking ahead, TSMC expects solid growth to be underpinned by its advanced 3-nanometer and 5-nanometer process technologies. On the trade front, Taiwan currently faces a blanket 10% tariff imposed by the Trump administration, which could escalate to 32% following the expiration of the President’s 90-day pause on “reciprocal tariffs,” barring a bilateral agreement. In response to these trade tensions, TSMC revealed plans to invest an additional $100 billion in the U.S., supplementing the $65bn it committed last month to the construction of three U.S.-based fabrication plants. 2Q25recommended trading range: $130 to $170. Neutral Outlook.
1Q25 Revenue: $16.97B, +7.4% YoY, beat estimates by $40M
1Q25 GAAP EPS: $3.64, beat estimates by $0.17
FY25 Guidance: Expect revenue growth to be between 8.0% to 10.0%, midpoint of 9.0% above consensus of 8.14%; Expect GAAP EPS to be between $15.0 to $15.5, midpoint of $15.25 below consensus of $15.26.
Comment: American Express posted strong quarterly results, driven by resilient spending from its affluent customer base, which appeared largely unfazed by concerns over a potential economic slowdown. The company’s long-standing strategy of targeting high-income consumers—through a combination of rewards and exclusive benefits—has continued to provide a buffer against broader macroeconomic weakness. Amex noted that cardmember spending, credit performance, and demand for its premium offerings remained robust across its customer segments. Spending patterns through the first half of April have been consistent with first-quarter trends, underscoring sustained consumer strength. Nevertheless, the University of Michigan’s consumer sentiment index fell to a near three-year low, suggesting potential headwinds for consumer spending in the second quarter amid ongoing economic uncertainty. 2Q25recommended trading range: $225 to $275. Neutral Outlook.
2Q25 Revenue: $7.73B, -15.1% YoY, miss estimates by $300M
2Q25 GAAP EPS: $2.58, miss estimates by $0.07
3Q25 Guidance: Expect revenue of $8.4B-$8.9B with 22,000-22,500 home closings and a home sales gross margin of 21-21.5%
FY25 Guidance: Lowered forecast to revenue of $33.3B to $34.8B and homes closed by homebuilding operations of 85,000 homes to 87,000 homes. Reiterate income tax rate of approximately 24.0% and dividend payments of approximately $500M.
Dividend distribution: Declared $0.40/share quarterly dividend, in line with previous, payable 9 May; for shareholders of record 2 May
Comment: D.R. Horton reported Q2 results that came in below analysts’ expectations, posting earnings of US$2.58 per share on US$7.7bn in revenue. The company saw a 15% YoY decline in net sales orders and homebuilding revenue, driven by ongoing affordability challenges and cautious consumer sentiment. Gross margin on home sales declined slightly to 21.8%, reflecting increased use of incentives to support demand. Despite these pressures, the company remains profitable, with improving construction cycle times and low cancellation rates, signaling resilient buyer commitment. The company also continues to benefit from its rental operations and strategic lot development partnership with Forestar. D.R. Horton has increased its capital return efforts, repurchasing US$2.4bn in shares year-to-date and planning US$4bn in buybacks for the full fiscal year. Looking ahead, D.R. Horton expects consolidated Q3 revenues between US$8.4bn to US$8.9bn and full-year revenues of US$33.3bn to US$34.8bn. While the company plans to remain flexible with pricing, incentives, and inventory levels to sustain sales momentum, it may continue to face headwinds from macroeconomic volatility, trade policy uncertainty, and elevated inflation, all of which could weigh on consumer housing demand. 3Q25recommended trading range: $115 to $130. Neutral Outlook.
1Q25 Revenue: $10.54B, +12.5% YoY, beat estimates by $40M
1Q25 GAAP EPS: $6.61, beat estimates by $0.95
2Q25 Guidance: Expect revenue of $11.04B, above the analyst consensus of $10.90B.
FY25 Guidance: Reaffirmed revenue forecast of $43.5B and $44.5B
Comment: Netflix posted strong Q1 results, beating both revenue and EPS expectations with US$10.54bn in revenue and US$6.61 EPS. The company reaffirmed its full-year revenue guidance of US$43.5bn to US$44.5bn, driven by continued subscriber growth, increased pricing, and a doubling of ad revenue. Additionally, it reported no significant consumer impact from economic uncertainty or tariffs, citing resilience and the success of its lower-cost, ad-supported tier, which accounted for 55% of new sign-ups in available markets. Netflix emphasized its value as affordable home entertainment during tough economic times, supported by global content hits and strong user retention. Despite a volatile macroeconomic environment and global trade tensions arising, we believe that Netflix is well-positioned to maintain its growth trajectory through strategic pricing, global content expansion, and its scalable ad-supported model. With demand remaining strong across international markets and continued content releases, the company expects to continue growing its subscriber base and revenue, regardless of economic cycles. 2Q25recommended trading range: $970 to $1,040. Positive Outlook.
