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What's in the Cards for Texas Instruments' (TXN) Q4 Earnings?

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Texas Instruments Incorporated (TXN - Free Report) is scheduled to report fourth-quarter 2021 results on Jan 25.

For fourth-quarter 2021, the company anticipates revenues between $4.22 billion and $4.58 billion. The Zacks Consensus Estimate for the same is pegged at $4.44 billion, suggesting growth of 8.9% from the year-ago quarter’s reported figure.

The company expects earnings of $1.83-$2.07 per share for the fourth quarter.

The consensus mark for the same is pegged at $1.95 per share, indicating an improvement of 8.3% from the prior-year reported figure. The figure has been unchanged over the past 30 days.

The company surpassed the Zacks Consensus Estimate all the trailing four quarters, delivering an earnings surprise of 16.8%, on average.

Texas Instruments Incorporated Price and EPS Surprise

 

Texas Instruments Incorporated Price and EPS Surprise

Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote

Factors to Consider

Texas Instruments’ product portfolio strength and expanding manufacturing capabilities are expected to get reflected in its upcoming quarterly results.

Strengthening momentum across the Analog and Embedded Processing segments is likely to have aided Texas Instrument’s fourth-quarter performance.

The company’s robust signal chain and power product lines are expected to have continued to aid top-line growth within the Analog segment in the quarter under discussion.

The uptrend in personal electronics, owing to the rising demand for electronic gadgets for remote working, learning and entertainment amid the ongoing pandemic, is likely to have driven growth in the company’s revenues generated from the personal electronics market in the to-be-reported quarter.

The continued rebound in the automotive industry is expected to have been a tailwind in the fourth quarter.

Solid momentum across major sectors is anticipated to have continued to aid the company’s performance in the industrial market in the quarter under review.

The company’s strong investments in growth avenues and competitive advantages are expected to have been positives.

Texas Instrument’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus to accelerate free cash flow generation is likely to have been another positive. The impacts of all these factors are expected to get reflected in the company’s fourth-quarter results.

However, uncertainties related to the coronavirus pandemic are expected to have been overhangs for TXN in the quarter under review. Further, softness in the communication equipment space is anticipated to have been concerning.

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Texas Instruments this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Texas Instruments currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.

Endava (DAVA - Free Report) has an Earnings ESP of +1.70% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Endava is scheduled to release the second-quarter fiscal 2022 results on Feb 16. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting an increase of 55.3% from the prior-year reported figure.

Alphabet (GOOGL - Free Report) has an Earnings ESP of +10.08% and a Zacks Rank #2 at present.

Alphabet is scheduled to release the fourth-quarter 2021 results on Feb 1. The Zacks Consensus Estimate for GOOGL’s earnings is pegged at $26.85 per share, which suggests an increase of 20.4% from the prior-year reported figure.

Monolithic Power Systems (MPWR - Free Report) has an Earnings ESP of +2.83% and a Zacks Rank #2 at present.

Monolithic Power Systems is set to report the fourth-quarter 2021 results on Feb 3. The Zacks Consensus Estimate for MPWR’s earnings is pegged at $1.87 per share, which suggests an increase of 42.8% from the prior-year reported figure.


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