Texas Instruments Earnings: What To Look For From TXN

Jabin Bastian /
2022/07/25 4:27 am EDT
Add to Watchlist

Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting earnings tomorrow after the bell. Here's what investors should know.

Last quarter Texas Instruments reported revenues of $4.9 billion, up 14.3% year on year, beating analyst revenue expectations by 3.62%. It was a mixed quarter for the company, with a significant improvement in gross margin but an underwhelming revenue 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 1.47% year on year to $4.64 billion, slowing down from the 41.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.15 per share.

Texas Instruments Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing three upwards revisions over the last thirty days. The company only missed Wall St's revenue estimates once over the last two years, and has on average exceeded top line expectations by 7.26%.

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. Seagate Technology's revenues decreased 12.7% year on year, missing analyst estimates by 5.72%. Seagate Technology traded flat on the results. Read our full analysis of Seagate Technology's results here.

There has been positive sentiment among investors in the semiconductors segment, with the stocks up on average 5.69% over the last month. Texas Instruments is up 5.94% during the same time, and is heading into the earnings with analyst price target of $180.6, compared to share price of $164.87.

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.