The following three growing technology companies have posted significant year-over-year increases in their quarterly revenues and net income.
Taiwan Semiconductor Manufacturing Co Ltd
The first company to consider is Taiwan Semiconductor Manufacturing Co Ltd (TSM, Financial), a Taiwanese global distributor of integrated circuits.
The company grew its quarterly revenue by 45.4% to $10.31 billion in first-quarter 2020, up from $7.09 billion in the prior-year quarter. The net income was $3.9 billion for the first quarter of 2020 compared to net income of $1.9 billion for the same quarter of 2019.
After a 21% increase over the past year, the stock price traded at $50.92 per American Depositary Receipt at close on May 13 for a market cap of $264.08 billion and a 52-week range of $37.18 to $60.64.
Currently, Taiwan Semiconductor pays a quarterly cash dividend of 41.7 cents per common share.
Wall Street sell-side analysts recommend an overweight rating for this stock and have established an average target price of $52.55 per ADR.
GuruFocus assigned a high rating of 8 out of 10 for the company’s financial strength and a high rating of 9 out of 10 for its profitability.
Wall Street sell-side analysts predict that Taiwan Semiconductor will grow its revenues by 20.6% in 2020 and 11.7% in 2021, while its net earnings are expected to increase by 25.6% in 2020 and 15.2% in 2021.
ServiceNow Inc
The second company to consider is ServiceNow Inc (NOW, Financial), a Santa Clara, California-based provider of cloud computing solutions to enterprises worldwide.
The company has grown its quarterly revenue by 33% to $1.05 billion in the first quarter of 2020, up from $0.79 billion in the prior-year quarter. The net income of $48.2 million in the first quarter of 2020 marked an increse from a net loss of $1.5 million in the comparable quarter of 2019.
As a result of a 32% increase over the past year, the stock price traded at around $361.29 per share at close on May 13 for a market cap of $68.9 billion and a 52-week range of $213.99 to $388.50.
Wall Street sell-side analysts recommend an overweight rating for this stock and have set an average target price of $368 per share.
GuruFocus assigned a positive score of 6 out of 10 to the company’s financial strength and a moderate score of 4 out of 10 to its profitability.
Xperi Corp
The third company to consider is Xperi Corp (XPER, Financial), a San Jose, California-based developer of various digital and interconnect technologies.
The company grew its quarterly revenue by nearly 108% to $117.7 million in the first quarter of 2020, up from $56.6 million in the prior-year quarter. The bottom line reported a positive increase to net income of $19.3 million in the first quarter of 2020 compared to a loss of $25.08 million in the comparable period of 2019.
As a result of a 40% decline over the past year, the stock price traded at $14.25 per share at close on May 13 for a market capitalization of $720.12 million and a 52-week range of $9.01 to $25.84.
The company is currently paying a quarterly cash dividend of 20 cents per common share.
Wall Street sell-side analysts recommend a buy rating for this stock and have set an average target price of $24 per share.
GuruFocus assigned a low score of 3 out of 10 to the company’s financial strength and a good score of 7 out of 10 for the profitability.
Disclosure: I have no positions in any securities mentioned in this article.
Read more here:
- 3 High Earnings Return Stocks to Consider
- A Trio of Stocks That Have Grown Sales Fast
- A Potentially Undervalued Trio to Consider
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