Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be announcing earnings results this Wednesday after the bell. Here’s what you need to know.
Texas Instruments beat analysts’ revenue expectations last quarter, reporting revenues of $5.46 billion, up 22.8% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS and 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 24.4% year on year, improving from the 14.2% 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 rarely misses Wall Street’s revenue estimates.
Looking at Texas Instruments’s peers in the semiconductors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Penguin Solutions delivered year-on-year revenue growth of 67.7%, beating analysts’ expectations by 8.8%, and Micron reported revenues up 379%, topping estimates by 6.4%. Penguin Solutions traded up 13.1% following the results while Micron was also up 3%.
Read our full analysis of Penguin Solutions’s results here and Micron’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. While some of the semiconductors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 7.8% on average over the last month. Texas Instruments is up 2.5% during the same time and is heading into earnings with an average analyst price target of $324.39 (compared to the current share price of $277.56).
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