Texas Instruments is set to report Q4 earnings, with analysts predicting a decline in revenue and earnings per share compared to last year.
Austin: Wall Street is buzzing about Texas Instruments (TXN) as they gear up to release their quarterly earnings. Analysts are expecting earnings of $1.19 per share, which is a drop of 20.1% from last year. Revenue is projected to hit $3.86 billion, down 5.4% from the same quarter last year.
Interestingly, the earnings per share estimate hasn’t changed in the last month. This shows that analysts are sticking to their guns with their predictions.
Before the earnings report drops, it’s crucial to look at any shifts in earnings projections. These changes can really influence how investors react to the stock. Studies have shown that earnings estimates often correlate with short-term stock price movements.
While most investors focus on the overall earnings and revenue numbers, digging into specific metrics can give a clearer picture of how the company is doing.
For Texas Instruments, analysts expect ‘Revenue- Other’ to come in at $213.67 million, which is a 4.2% increase year over year. Meanwhile, ‘Revenue- Embedded Processing’ is expected to be $588.98 million, reflecting a significant drop of 21.7% from last year.
When it comes to ‘Revenue- Analog,’ analysts predict it will reach $3.05 billion, down 2.2% from the previous year. They also forecast ‘Operating Profit- Analog’ at $1.15 billion, which is lower than the $1.28 billion reported last year.
For ‘Operating Profit- Other,’ the estimate is $3.72 million, a big drop from the $58 million reported last year. Lastly, ‘Operating Profit- Embedded Processing’ is expected to be $103.78 million, down from $195 million last year.
In the past month, Texas Instruments shares have gone up by 1.6%, while the broader market, represented by the Zacks S&P 500, has dipped by 2.1%. With a Zacks Rank of #4 (Sell), TXN is anticipated to lag behind the market in the near term.
