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What's in Store for Texas Instruments' (TXN) Q2 Earnings?
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Texas Instruments (TXN - Free Report) or TI is scheduled to report second-quarter 2020 results on Jul 21, after market close. In the last reported quarter, TI delivered an earnings surprise of 22.8%.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings has improved 1.2% to 87 cents per share over the past 30 days. However, it indicates a decline of 32.6% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.94 billion, implying a decline of 19.7% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
TI’s compelling product line and manufacturing efficiencies, which include growing 300-millimeter Analog output, are likely to have helped this segment achieve growth during the quarter. However, weak performance of high-volume and power product lines may have affected its earnings.
Markedly, demand for the PCs and servers that power data centers is expected to have increased in the quarter to be reported as people are increasingly working from home due to the pandemic.
However, weak performance of processors and connected microcontrollers, along with reduced factory loadings might have affected its earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for Embedded Processing revenues is currently pegged at $573 million, suggesting a decrease of 12.3% from the year-ago quarter.For the Analog segment, the Zacks Consensus Estimate for revenues is currently pegged at $2.13 billion, indicating a 13.5% year-over-year decrease.
Texas Instruments Incorporated Price and EPS Surprise
TI has always been a well-executed company. Management has been focused on increasing its free cash flow per share and strengthening competitive advantages. However, increasing competition in the auto and industrial space, along with unfavorable currency impact might have hurt the company’s second-quarter performance.
Also, the coronavirus pandemic is likely to impact the upcoming results.
What Our Model Says
Our proven model predicts 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. That is the case here.
Currently, the company has a Zacks Rank #3 and an Earnings ESP of +6.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported.
NXP Semiconductors N.V. (NXPI - Free Report) has an Earnings ESP of +11.90% and holds a Zacks Rank of 2.
Expedia (EXPE - Free Report) has an Earnings ESP of +12.98% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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What's in Store for Texas Instruments' (TXN) Q2 Earnings?
Texas Instruments (TXN - Free Report) or TI is scheduled to report second-quarter 2020 results on Jul 21, after market close. In the last reported quarter, TI delivered an earnings surprise of 22.8%.
For the to-be-reported quarter, the Zacks Consensus Estimate for earnings has improved 1.2% to 87 cents per share over the past 30 days. However, it indicates a decline of 32.6% from the year-ago reported figure.
The consensus mark for revenues is pegged at $2.94 billion, implying a decline of 19.7% from the year-ago reported figure.
Let’s see how things have shaped up for this announcement.
TI’s compelling product line and manufacturing efficiencies, which include growing 300-millimeter Analog output, are likely to have helped this segment achieve growth during the quarter. However, weak performance of high-volume and power product lines may have affected its earnings.
Markedly, demand for the PCs and servers that power data centers is expected to have increased in the quarter to be reported as people are increasingly working from home due to the pandemic.
However, weak performance of processors and connected microcontrollers, along with reduced factory loadings might have affected its earnings in the to-be-reported quarter.
The Zacks Consensus Estimate for Embedded Processing revenues is currently pegged at $573 million, suggesting a decrease of 12.3% from the year-ago quarter.For the Analog segment, the Zacks Consensus Estimate for revenues is currently pegged at $2.13 billion, indicating a 13.5% year-over-year decrease.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote
Overall Picture
TI has always been a well-executed company. Management has been focused on increasing its free cash flow per share and strengthening competitive advantages. However, increasing competition in the auto and industrial space, along with unfavorable currency impact might have hurt the company’s second-quarter performance.
Also, the coronavirus pandemic is likely to impact the upcoming results.
What Our Model Says
Our proven model predicts 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. That is the case here.
Currently, the company has a Zacks Rank #3 and an Earnings ESP of +6.19%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other stocks that you may also want to consider, as our model shows that these too have the right combination of elements to post an earnings beat in the quarter to be reported.
NXP Semiconductors N.V. (NXPI - Free Report) has an Earnings ESP of +11.90% and holds a Zacks Rank of 2.
Netflix, Inc. (NFLX - Free Report) has an Earnings ESP of +2.27% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Expedia (EXPE - Free Report) has an Earnings ESP of +12.98% and a Zacks Rank #3.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>