Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting earnings tomorrow after the bell. Here's what to expect.
Last quarter Texas Instruments reported revenues of $4.38 billion, down 10.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and an increase in inventory levels.
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 decline 16.1% year on year to $4.37 billion, a deceleration on the 13.8% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.76 per share.
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 4.05%.
Looking at Texas Instruments's peers in the semiconductors segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Micron Technology's revenues decreased 56.6% year on year, beating analyst estimates by 2.05%, and SMART reported revenue decline of 17.1% year on year, exceeding estimates by 2.2%. Micron Technology traded up 3.89% on the results, SMART was up 5.38%. Read our full analysis of Micron Technology's results here and SMART's results here.
There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 5.16% over the last month. Texas Instruments is up 9.54% during the same time, and is heading into the earnings with analyst price target of $183.21, compared to share price of $184.84.
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.