Analog chip manufacturer Texas Instruments (NASDAQ: TXN) will be reporting results this Wednesday after the bell. Here’s what to expect.
Texas Instruments beat analysts’ revenue expectations last quarter, reporting revenues of $4.83 billion, up 18.6% year on year. It was a stunning quarter for the company, with a beat of analysts’ EPS estimates and an impressive beat of analysts’ operating income estimates.
Is Texas Instruments a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Texas Instruments’s revenue to grow 18.2% year on year, improving from the 16.4% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Texas Instruments has missed Wall Street’s revenue estimates multiple times 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 delivered year-on-year revenue growth of 346%, beating analysts’ expectations by 13.9%, and Penguin Solutions reported revenues up 47.6%, topping estimates by 17.5%. Penguin Solutions traded up 25.1% following the results.
Read our full analysis of Micron’s results here and Penguin Solutions’s results here.
Over the last year or so, investors' attention has moved from one major market theme to the next, spanning AI disruption and surging infrastructure investment to geopolitical tensions, interest rates, and the health of the broader economy. Unfortunately, semiconductors stocks have struggled in this environment as share prices are down 22.3% on average over the last month. Texas Instruments is down 14.1% during the same time and is heading into earnings with an average analyst price target of $306.29 (compared to the current share price of $285.50).
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