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For the third quarter of 2024, Texas Instruments expects revenues between $3.94 billion and $4.26 billion. The Zacks Consensus Estimate is pegged at $4.11 billion, suggesting a decline of 9.3% from the year-ago quarter’s reported figure.
Management expects earnings per share between $1.24 and $1.48 for the quarter under review. The consensus mark is pegged at $1.36 per share, indicating a decline of 24.4% from the prior-year quarter’s reported figure. The estimate has been unchanged over the past 60 days.
TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 4.97%.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments’ increasing manufacturing costs associated with reduced factory loadings and planned capacity expansions are likely to have been a major headwind for the company in the to-be-reported quarter.
A weakening demand environment, primarily due to inventory reductions by customers, is expected to have negatively impacted the performance of the Analog and Embedded Processing segments in the quarter under review. The Zacks Consensus Estimate for Analog revenues is pegged at $3.14 billion, suggesting a decline of 6.4% from the year-ago reported figure. The consensus mark for Embedded Processing revenues is pinned at $662.4 million, indicating a fall of 25.6% from the prior-year quarter’s actual.
However, the rebound of communication equipment, strength in personal electronics and increasing demand across the industrial end market are likely to have boosted the top-line growth.
Texas Instruments’ strong investments in growth avenues and competitive advantages, including manufacturing, technology and product portfolio expansion, are expected to have contributed well to its performance during the to-be-reported quarter.
TXN’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus on accelerating the free cash flow generation is likely to have been another positive. The impacts of all these factors are expected to be reflected in the company’s third-quarter results.
Earnings Whispers
Our proven model predicts an earnings beat for TXN this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.37 per share) and the Zacks Consensus Estimate ($1.36 per share), is +0.44%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TXN carries a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:
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Is a Beat in the Cards for Texas Instruments in Q3 Earnings?
Texas Instruments Incorporated (TXN - Free Report) is scheduled to report third-quarter 2024 results on Oct. 22.
For the third quarter of 2024, Texas Instruments expects revenues between $3.94 billion and $4.26 billion. The Zacks Consensus Estimate is pegged at $4.11 billion, suggesting a decline of 9.3% from the year-ago quarter’s reported figure.
Stay up-to-date with all quarterly releases: See Zacks Earnings Calendar.
Management expects earnings per share between $1.24 and $1.48 for the quarter under review. The consensus mark is pegged at $1.36 per share, indicating a decline of 24.4% from the prior-year quarter’s reported figure. The estimate has been unchanged over the past 60 days.
TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed once, delivering an average earnings surprise of 4.97%.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote
Factors to Consider
Texas Instruments’ increasing manufacturing costs associated with reduced factory loadings and planned capacity expansions are likely to have been a major headwind for the company in the to-be-reported quarter.
A weakening demand environment, primarily due to inventory reductions by customers, is expected to have negatively impacted the performance of the Analog and Embedded Processing segments in the quarter under review. The Zacks Consensus Estimate for Analog revenues is pegged at $3.14 billion, suggesting a decline of 6.4% from the year-ago reported figure. The consensus mark for Embedded Processing revenues is pinned at $662.4 million, indicating a fall of 25.6% from the prior-year quarter’s actual.
However, the rebound of communication equipment, strength in personal electronics and increasing demand across the industrial end market are likely to have boosted the top-line growth.
Texas Instruments’ strong investments in growth avenues and competitive advantages, including manufacturing, technology and product portfolio expansion, are expected to have contributed well to its performance during the to-be-reported quarter.
TXN’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus on accelerating the free cash flow generation is likely to have been another positive. The impacts of all these factors are expected to be reflected in the company’s third-quarter results.
Earnings Whispers
Our proven model predicts an earnings beat for TXN this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.
Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($1.37 per share) and the Zacks Consensus Estimate ($1.36 per share), is +0.44%. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Zacks Rank: TXN carries a Zacks Rank #3 at present.
Other Stocks to Consider
Here are some other companies worth considering, as our model shows that these also have the right combination of elements to beat on earnings in their upcoming releases:
Reddit (RDDT - Free Report) has an Earnings ESP of +72.10% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Reddit shares have surged 60.4% year to date. RDDT is slated to report its third-quarter 2024 results on Oct. 29.
Carrier Global (CARR - Free Report) has an Earnings ESP of +1.18% and a Zacks Rank of 2 at present.
Carrier Global shares have gained 42% year to date. CARR is scheduled to report its third-quarter 2024 results on Oct. 24.
Cognizant Technology Solutions (CTSH - Free Report) has an Earnings ESP of +2.86% and carries a Zacks Rank #3 at present.
Cognizant shares have gained 3.3% year to date. Cognizant is slated to report its third-quarter 2024 results on Oct. 30.