Back to top

Image: Bigstock

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

Read MoreHide Full Article

Texas Instruments Incorporated (TXN - Free Report) is scheduled to report fourth-quarter 2022 results on Jan 24.

For fourth-quarter 2022, the company anticipates revenues between $4.4 billion and $4.8 billion. The Zacks Consensus Estimate for the same is pegged at $4.6 billion, suggesting a decline of 4.9% from the year-ago quarter’s reported figure.

Texas Instruments expects earnings of $1.83-$2.11 per share for the fourth quarter.

The consensus mark for the same is pegged at $1.96 per share, indicating a decline of 13.7% from the prior-year reported figure. The figure has moved south by 0.5% over the past 30 days.

The company surpassed the Zacks Consensus Estimate in the trailing four quarters, delivering an earnings surprise of 11.61%, 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 Analog and Embedded Processing segments is likely to have aided the 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 continued rebound in the automotive industry is expected to have been a tailwind in the fourth quarter.

Solid momentum across the communication equipment and enterprise systems market is anticipated to have continued to aid Texas Instruments’ performance in the quarter under review.

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

Texas Instruments’ continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus on accelerating 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 and supply-chain constraints are expected to have been overhangs for the company in the quarter under review.

Softness in the personal electronics space is likely to have been another concern. Also, broadening weakness in the industrial market is likely to have been a headwind.

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 -2.30%.

Stocks to Consider

Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.

MSCI (MSCI - Free Report) has an Earnings ESP of +0.43% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

MSCI is scheduled to release fourth-quarter 2022 results on Jan 31. The Zacks Consensus Estimate for MSCI’s earnings is pegged at $2.71 per share, suggesting an increase of 7.97% from the prior-year quarter’s reported figure.

Endava (DAVA - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank #3 at present.

Endava is set to report second-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for DAVA’s earnings is pegged at 68 cents per share, suggesting an increase of 7.94% from the prior-year fiscal period’s reported figure.

Analog Devices (ADI - Free Report) has an Earnings ESP of +2.99% and a Zacks Rank of 3 at present.

Analog Devices is scheduled to release first-quarter fiscal 2023 results on Feb 15. The Zacks Consensus Estimate for ADI’s earnings is pegged at $2.59 per share, suggesting an increase of 33.5% from the prior-year fiscal quarter’s reported figure.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.


Zacks' 7 Best Strong Buy Stocks (New Research Report)


Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.


Click Here, It's Really Free

Published in