Texas Instruments, NYSE: TXN is scheduled to release its results for the third quarter today (October 22, 2024).
Investors eagerly await the report in order to determine how the semiconductor giant will navigate current market challenges.
Expected financial performance of Texas Instruments
Texas Instruments expects Q3 revenues of between $3.94 and $4.26 Billion, while the Zacks Consensus estimate is $4.11 Billion, a drop of about 9.3% from last year.
The consensus estimates $1.36 for earnings per share, a decrease of 24.4% compared with last quarter.
This estimate remained the same over the last 60 days.
Texas Instruments’ revenue for the quarter ended March 31, 2014 was $3.82 Billion, down by 16% compared to last year, and its EPS stood at $1.22.
Texas Instruments is resilient despite these challenges. It has exceeded earnings expectations in three out of four of the past quarters with an average surprise of 4.97%.
Texas Instruments earnings Q3 preview
This quarter, Texas Instruments is expected to be impacted by several factors:
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Production costs: It is expected that the increased production costs will have a negative impact on profits due to the reduced utilization of factories and expansions planned.
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Low demand A significant reduction in inventories by large customers is expected to have an impact on sales. This will be particularly true in Analog and Embedded Processing. Zacks Consensus estimates Analog revenue at $3.14 Billion, a decline of 6.4%. Embedded Processing is expected to fall 25.6%, to $624.40 Million.
- The market is recovering. On the positive side, a rebound in communications equipment, improved demand for personal electronics and an increase in industrial sales could boost overall revenues.
TXN Stock Performance
Texas Instruments’ stock has risen by approximately 20% in value year to date, beating many of its peers within the semiconductor industry.
Analysts have become more conservative in their forecast, and revenue estimates are down four points over the last month.
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While annual returns for TXN have been inconsistent–showing 18% in 2021, a -10% drop in 2022, and 6% in 2023–market conditions remain volatile, influenced by macroeconomic factors and shifting demand patterns.
Investors want to know if Q3’s results are going to lead to another rally, or reveals persistent problems.
Investors will closely watch Texas Instruments’ Q3 results today to gain insights on the company’s strategy in a highly competitive semiconductor market.
It is important to determine the trajectory of the stock based on the upcoming results, particularly when considering production costs and fluctuations in demand.
Can TXN overcome these challenges with its strong focus on competitive advantage and growth?
Watch the TXN earnings report for all the recent developments.
Post Texas Instruments has exceeded earnings expectations in three out of four quarters. Will it happen again today? The post may change as the updates unfold.
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