Yahoo Finance Texas Instruments Earnings: What To Look For From TXN
Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting results tomorrow afternoon. Here's what investors should know.
Texas Instruments beat analysts' revenue expectations by 1.4% last quarter, reporting revenues of $3.66 billion, down 16.4% year on year. It was a mixed quarter for the company: Texas Instruments' topped analysts' revenue and EPS expectations, driven by strong performance in its analog segment. We were also glad next quarter's revenue guidance was above Wall Street's estimates. On the other hand, its gross margin fell and its inventory levels increased.
Is Texas Instruments a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Texas Instruments's revenue to decline 15.8% year on year to $3.82 billion, a further deceleration from the 13.1% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.19 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Instruments has missed Wall Street's revenue estimates twice over the last two years.
Looking at Texas Instruments's peers in the semiconductors segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Micron Technology delivered year-on-year revenue growth of 81.5%, beating analysts' expectations by 2%, and SMART reported a revenue decline of 12.7%, in line with consensus estimates. Micron Technology traded down 7.1% following the results while SMART was up 26.3%.
Read our full analysis of Micron Technology's results here and SMART's results here.
Investors in the semiconductors segment have had steady hands going into earnings, with share prices flat over the last month. Texas Instruments is up 2.7% during the same time and is heading into earnings with an average analyst price target of $187.8 (compared to the current share price of $199.2).
Here at StockStory, we certainly understand the potential of thematic investing. Diverse winners from Microsoft (MSFT) to Alphabet (GOOG), Coca-Cola (KO) to Monster Beverage (MNST) could all have been identified as promising growth stories with a megatrend driving the growth. So, in that spirit, we’ve identified a relatively under-the-radar profitable growth stock benefitting from the rise of AI, available to you FREE via this link.
