What to Expect From Texas Instruments' Q3 2024…

What to Expect From Texas Instruments' Q3 2024 Earnings Report

Valued at $183.6 billion by a market cap, Dallas, Texas-based Texas Instruments Incorporated (TXN) is a leading manufacturer in the semiconductor industry. The company specializes in designing, manufacturing, and selling analog and embedded processing products used across various sectors, including industrial, automotive, and personal electronics. The company is expected to announce its fiscal Q3 earnings results before the market opens on Tuesday, Oct. 22.

Ahead of the event, analysts expect the producer of analog and embedded chips to report a profit of $1.36 per share, down 24.4% from $1.80 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in three of the past four quarters while missing on one other occasion. In the most recent quarter, the company exceeded estimates by a 5.2% margin.

For fiscal 2024, analysts expect TXN to report an EPS of $5.11, down 27.2% from $7.02 in fiscal 2023. However, looking ahead to fiscal 2025, EPS is anticipated to grow 20.2% year over year to $6.14.

TXN has gained nearly 29% over the past 52 weeks, underperforming both the S&P 500 Index's ($SPX) 34.1% rise and the Technology Select Sector SPDR Fund's (XLK) 35.9% increase over the same period.

Despite strong Q2 EPS of $1.22 and revenue of $3.8 billion, shares of Texas Instruments dipped 3.7% on Jul. 23 due to concerns over softer-than-expected analog chip demand following a tepid forecast from peer NXP Semiconductors, which impacted investor sentiment. However, the stock outperformed the broader chip sector on Aug. 21 because the company provided a rare midyear update, lowering its 2026 capital expenditure forecast from $5 billion to a range of $2 billion to $5 billion, acknowledging weaker market conditions. This adjustment, combined with its commitment to long-term investments in industrial and automotive markets, reassured investors amid the downturn.

Analysts' consensus view on Texas Instruments stock is cautious, with a "Hold" rating overall. Among 28 analysts covering the stock, nine recommend a "Strong Buy," 15 suggest a "Hold," one advises "Moderate Sell," and three give "Strong Sell." As of writing, TXN is trading below the average analyst price target of $210.97.

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On the date of publication, Sohini Mondal 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.

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