Texas Instruments (TXN) Reports Q1: Everything You Need To Know Ahead Of Earnings

Kayode Omotosho /
2022/04/25 7:51 am EDT

Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting results tomorrow after market close. Here's what to look for.

Last quarter Texas Instruments reported revenues of $4.83 billion, up 18.5% year on year, beating analyst revenue expectations by 9.05%. It was a very strong quarter for the company, with an impressive beat of analyst estimates and a very optimistic guidance for the next quarter.

Is Texas Instruments buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Texas Instruments's revenue to grow 10.3% year on year to $4.73 billion, slowing down from the 28.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.19 per share.

Texas Instruments Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 7.49%.

Looking at Texas Instruments's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint what we can expect. Lam Research delivered top-line growth of 5.52% year on year, missing analyst estimates by 4.33%. The stock traded down 3.68% on the results. Read our full analysis of Lam Research's results here.

Tech stocks have been facing declining investor sentiment in 2022 and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 14.5% over the last month. Texas Instruments is down 7.01% during the same time, and is heading into the earnings with analyst price target of $197.7, compared to share price of $172.65.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.