PepsiCo, TSMC, Moderna, and Dice Molecules: Weekly Digest (10 October – 14 October)
The following companies attracted our attention this week: Taiwan Semiconductor Manufacturing, Dice Molecules Holdings, PepsiCo, and Moderna. Let's talk about their latest news.
TSMC stock faced a difficult week
On Tuesday 11 October, the share price of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), as well as the stock prices of other leading chip producers from Asia, fell steeply after the US introduced a new set of sanctions against Chinese players from the semiconductor industry. As a result, TSMC shares lost 5.92%, reaching $63.45.
Nevertheless, the strong report for Q3 sent the stock quotes of TSMC jumping 3.92% to $66.62, namely: on Thursday 13 October, Taiwan Semiconductor Manufacturing Company Limited reported its Q3 2022 financial performance. Earnings in July-September, compared to the results of Q3 last year, increased 35.9% to $20.23 billion, exceeding the consensus forecast by $0.32 billion.
The net profit of Taiwan Semiconductor Manufacturing Company Limited increased 79.6% to $8.8 billion, and EPS recorded a 79.7% growth to $1.79. Analysts had expected the EPS result to be $1.7.
Moreover, the company decreased its capital expenses for this year by 10% to $36 billion. TSMC management expects Q4 earnings to reach $19.9-20.7 billion.
Dice Molecules shares skyrocketed 62%
On Tuesday, the share price of American biopharma company Dice Molecules Holdings LLC (NASDAQ:DICE) skyrocketed 62.27% to $40. The company specialises in developing drugs against autoimmune and inflammatory diseases.
This all-time high growth of Dice Molecules Holdings LLC stock can be explained by the positive results of the phase one clinical tests of DC-806, a new oral drug against psoriasis.
The company plans to send an application to the US Food and Drug Administration (FDA) in the first half of 2023 for tests of a new drug.
According to Kevin Judice, director general of Dice Molecules Holdings LLC, the results of phase one of the DC-806 tests demonstrate that it is capable of becoming the best oral drug in its class against psoriasis.
PepsiCo report: profit increased 21%
On Wednesday 12 October, American food industry giant PepsiCo Inc. shared its Q3 2022 results. The company reported an earnings increase of 8.8% against Q3 last year to $21.97 billion, which is $1.13 billion more than Wall Street analysts had forecast. The net profit rose 21.4% to $2.72 billion, and EPS increased by 21.9% to $1.95, exceeding the consensus forecast by $0.11.
PepsiCo Inc. management raised its forecast for this year: organic growth of earnings is expected to amount to 12% instead of 10%, and the growth of EPS to 10% instead of 8%. The strong quarterly statistics and the raised forecast for Q4 2022 sent the shares of PepsiCo Inc. (NASDAQ:PEP) surging: consequently, since Monday, they demonstrated an 8% growth to $174.61.
Moderna to collaborate with Merck on cancer vaccine
On Wednesday, pharma company Merck & Co announced that, alongside the biotech company Moderna Inc., it would be developing and commercialising a customisable mRNA vaccine against cancer.
This drug, which is currently individually selected for each patient, is in the midst of phase two tests. The results are expected at the end of this year.
As you remember, the companies have been partners since 2016. Under their agreement, Merck & Co will pay Moderna Inc. $250 million for selling its option for the joint development and commercialisation of the vaccine. For this project, the two companies will be equally sharing profits and expenses.
The information about the cooperation had a good impact on the quotes of the biotech company: on the same day, the shares of Moderna Inc. (NASDAQ:MRNA) jumped 8.28% to $130.72. During the trading session, the share price reached $141.47.
At the beginning of the week, the share price of Taiwan Semiconductor Manufacturing Company Limited dropped following a new set of US sanctions imposed on the Chinese representatives of the semiconductor industry. However, TSMC stock surged only two days later thanks to its report with impressive quarterly statistics and decreased annual capital expenses.
Dice Molecules Holdings LLC reported positive results of the clinical tests of a drug against psoriasis, which sent its shares skyrocketing 62%.
PepsiCo Inc. also presented its report for Q3 2022, which demonstrated increased earnings and profit, surpassing expert expectations. Since the beginning of the week, the share price of the company recorded an 8% growth.
Merck & Co and Moderna Inc. to collaborate on developing and commercialising a new vaccine against cancer. The information about the agreement sent the shares of Moderna Inc. up by 8%.