Texas Instruments (TXN) Q1 Earnings: What To Expect

Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting results this Wednesday afternoon. Here’s what to look for.

Texas Instruments missed analysts’ revenue expectations last quarter, reporting revenues of $4.42 billion, up 10.4% year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and a slight miss of analysts’ revenue 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 11.3% year on year, in line with the 11.1% 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 to stay the course heading into earnings. Texas Instruments has missed Wall Street’s revenue estimates multiple times over the last two years.

Looking at Texas Instruments’s peers in the semiconductors segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 196%, beating analysts’ expectations by 20.1%, and Penguin Solutions reported a revenue decline of 6.2%, topping estimates by 0.8%. Micron traded down 3.8% following the results while Penguin Solutions was up 13.4%.

Read our full analysis of Micron’s results here and Penguin Solutions’s results here.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 27.2% on average over the last month. Texas Instruments is up 24.3% during the same time and is heading into earnings with an average analyst price target of $227.33 (compared to the current share price of $234.50).

WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.

This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.