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Dallas, Texas-based Texas Instruments Incorporated (TXN) designs, manufactures and sells semiconductors to electronics designers and manufacturers. Valued at a market cap of $175.3 billion, the company is an original equipment manufacturer of analog, mixed-signal, and digital signal processing (DSP) integrated circuits. It is expected to announce its fiscal Q4 earnings results after the market closes on Thursday, Jan. 23.
Prior to this event, analysts expect the semiconductor company to report a profit of $1.19 per share, down 20.1% from $1.49 per share in the year-ago quarter. The company has a solid track record of consistently beating Wall Street's bottom-line estimates in the last four quarters. Its earnings of $1.47 per share in the previous quarter outpaced the forecasted figure by a notable margin of 8.1%.
For fiscal 2024, analysts expect TXN to report an EPS of $5.08, down 27.6% from $7.02 in fiscal 2023. Nonetheless, in fiscal 2025, EPS is expected to grow 12.6% year-over-year to $5.72.
Shares of TXN have gained 16.4% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 25.8% rise and the Technology Select Sector SPDR Fund’s (XLK) 27.1% return over the same time frame.
TXN’s shares soared 4% in the subsequent trading session after its Q3 earnings release on Oct. 22. The company’s revenue decreased 8.4% year-over-year to $4.2 billion but surpassed the Wall Street estimates of $4.1 billion. Meanwhile, its earnings of $1.47 per share fell 20.5% from the year-ago quarter but exceeded the consensus estimate by a significant margin of 8%.
Robust growth in its Personal Electronics, Enterprise Systems, and Communication Equipment markets primarily contributed to its better-than-expected performance. Moreover, the top and bottom-line figures came at the higher end of the management’s guidance. This might have further bolstered investor confidence.
Wall Street analysts are moderately optimistic about Texas Instruments’ stock, with a "Moderate Buy" rating overall. Among 30 analysts covering the stock, 10 recommend "Strong Buy," 16 suggest “Hold,” one indicates a “Moderate Sell,” and three suggest “Strong Sell.” This configuration is slightly more bullish than three months ago, with nine analysts suggesting a “Strong Buy” rating
The average analyst price target for TXN is $211.33, indicating a modest 9.9% potential upside from the current levels.
