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Texas Instruments Incorporated (TXN), headquartered in Dallas, Texas, is a global semiconductor company that designs, manufactures, tests, and sells analog and embedded processing chips for industrial, automotive, personal electronics, communications equipment, and enterprise systems. Valued at $182.24 billion by market cap, TXN has manufacturing and design facilities, including wafer fabrication and assembly/test operations in North America, Asia, and Europe. The world’s largest analog chipmaker is expected to announce its fiscal second-quarter earnings for 2024 on Tuesday, July 23.
Ahead of the event, analysts expect TXN to report a profit of $1.16 per share on a diluted basis, down 38% from $1.87 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on one other occasion. TXN’s management said that the company experienced some weakness across its end markets, with the exception of automotive in the previous quarter.
For fiscal 2024, analysts expect TXN to report EPS of $5.13, down 26.9% from $7.02 in fiscal 2023.
TXN stock has outperformed the S&P 500’s ($SPX) 17.2% gains on a YTD basis, with shares up 18.5% during this period. However, it has underperformed the S&P 500 Technology Sector SPDR’s (XLK) 22.3% gains over the same time frame.
On Apr. 24, TXN shares rose more than 6% after reporting its Q1 results. Its revenue of $3.66 billion surpassed the consensus estimates of $3.60 billion. The company’s EPS stood at $1.20, beating the Wall Street estimates of $1.06. For the current quarter, TXN expects Q2 revenue to be between $3.65 billion and $3.95 billion, the midpoint is above the consensus estimate of $3.78 billion and expects EPS between $1.05 and $1.25. Since reporting its Q1 results on Apr. 23, TXN shares have been on an uptrend.
Analysts’ consensus opinion on TXN stock is cautious, with a “Hold” rating overall. Out of 28 analysts covering the stock, nine advise a “Strong Buy” rating, 15 have a “Hold” rating, one recommends a “Moderate Sell” rating, and three give a “Strong Sell.” The average analyst price target for TXN is $186.05, indicating a 7.1% potential downside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
