Texas Instruments' Q4 Preview

Texas Instruments (NASDAQ:TXN) is a leading semiconductor company known for its analog and embedded processing products. As it prepares to release its quarterly earnings on April 23, 2025, analysts are closely watching the company's performance. The expected earnings per share (EPS) is $1.06, while revenue is projected to be around $3.91 billion.

The company's anticipated EPS range is between 94 cents and $1.16, with the Zacks Consensus Estimate aligning at $1.06. This marks an 11.7% decline from the previous year. Despite this, revenue expectations show a positive trend, with a projected increase of 6.7% from the same period last year, ranging between $3.74 billion and $4.06 billion.

Texas Instruments faces challenges from the ongoing U.S.-China trade war and tariff hikes, which may impact its performance. Additionally, a slowdown in industrial and automotive markets could affect its earnings. However, the company has a strong track record, consistently surpassing the Zacks Consensus Estimate in the last four quarters with an average surprise of 8.9%.

The company's financial metrics provide insight into its market valuation. With a price-to-earnings (P/E) ratio of 27.67 and a price-to-sales ratio of 8.47, Texas Instruments is valued highly by the market. Its enterprise value to sales ratio is 9.14, and the enterprise value to operating cash flow ratio is 22.62, indicating robust financial health.

Texas Instruments maintains a solid liquidity position, with a current ratio of 4.12, reflecting its ability to cover short-term liabilities. The debt-to-equity ratio of 0.80 shows moderate financial leverage. These metrics, combined with an earnings yield of 3.61%, highlight the company's financial stability and potential for future growth.

Texas Instruments (NASDAQ:TXN) is a leading semiconductor company known for its analog and embedded processing products. As it prepares to release its quarterly earnings on April 23, 2025, analysts are closely watching the company's performance. The expected earnings per share (EPS) is $1.06, while revenue is projected to be around $3.91 billion.

The company's anticipated EPS range is between 94 cents and $1.16, with the Zacks Consensus Estimate aligning at $1.06. This marks an 11.7% decline from the previous year. Despite this, revenue expectations show a positive trend, with a projected increase of 6.7% from the same period last year, ranging between $3.74 billion and $4.06 billion.

Texas Instruments faces challenges from the ongoing U.S.-China trade war and tariff hikes, which may impact its performance. Additionally, a slowdown in industrial and automotive markets could affect its earnings. However, the company has a strong track record, consistently surpassing the Zacks Consensus Estimate in the last four quarters with an average surprise of 8.9%.

The company's financial metrics provide insight into its market valuation. With a price-to-earnings (P/E) ratio of 27.67 and a price-to-sales ratio of 8.47, Texas Instruments is valued highly by the market. Its enterprise value to sales ratio is 9.14, and the enterprise value to operating cash flow ratio is 22.62, indicating robust financial health.

Texas Instruments maintains a solid liquidity position, with a current ratio of 4.12, reflecting its ability to cover short-term liabilities. The debt-to-equity ratio of 0.80 shows moderate financial leverage. These metrics, combined with an earnings yield of 3.61%, highlight the company's financial stability and potential for future growth.

Texas Instruments (NASDAQ:TXN) delivered stronger-than-expected fourth-quarter earnings and revenue, but its cautious guidance for the current quarter overshadowed the results, leading to a more than 4% drop in premarket trading.

For the quarter, the company reported earnings of $1.30 per share on revenue of $4.01 billion, surpassing analyst expectations of $1.21 per share and $3.9 billion in sales. Despite this solid performance, investors were unsettled by weaker forward-looking projections.

Chief Executive Officer Haviv Ilan highlighted significant challenges in the company's key automotive and industrial segments during the post-earnings call. Automotive chip sales faced "significant weakness," with slower-than-expected growth in China compared to the previous quarter. Meanwhile, the industrial division, responsible for chips used in factory automation, experienced "modest sequential declines," reflecting softening demand in key markets.

For the first quarter, Texas Instruments provided a subdued outlook, projecting earnings per share between $0.94 and $1.16 and revenue ranging from $3.74 billion to $4.06 billion. Both figures fall short of market expectations, with analysts forecasting $1.17 per share in earnings and $3.85 billion in revenue.

Texas Instruments (NASDAQ:TXN) delivered stronger-than-expected fourth-quarter earnings and revenue, but its cautious guidance for the current quarter overshadowed the results, leading to a more than 4% drop in premarket trading.

For the quarter, the company reported earnings of $1.30 per share on revenue of $4.01 billion, surpassing analyst expectations of $1.21 per share and $3.9 billion in sales. Despite this solid performance, investors were unsettled by weaker forward-looking projections.

Chief Executive Officer Haviv Ilan highlighted significant challenges in the company's key automotive and industrial segments during the post-earnings call. Automotive chip sales faced "significant weakness," with slower-than-expected growth in China compared to the previous quarter. Meanwhile, the industrial division, responsible for chips used in factory automation, experienced "modest sequential declines," reflecting softening demand in key markets.

For the first quarter, Texas Instruments provided a subdued outlook, projecting earnings per share between $0.94 and $1.16 and revenue ranging from $3.74 billion to $4.06 billion. Both figures fall short of market expectations, with analysts forecasting $1.17 per share in earnings and $3.85 billion in revenue.

Texas Instruments Incorporated (NASDAQ:TXN) is a leading player in the semiconductor industry, known for designing and manufacturing analog and embedded processing chips. The company competes with other major semiconductor firms like Intel and Qualcomm. On January 23, 2025, TXN reported earnings per share (EPS) of $1.30, surpassing the estimated $1.20, and actual revenue of approximately $4.01 billion, exceeding the estimated $3.88 billion.

Despite these positive results, TXN's stock price declined after the earnings forecast failed to meet market expectations, as highlighted by Investopedia. The company's outlook for future earnings was less optimistic, leading to a drop in share value after the market closed. This reaction underscores the importance of forward-looking guidance in influencing investor sentiment.

The financial results for the fourth quarter of 2024 showed a net income of $1.21 billion, with EPS recorded at $1.30, including a 2-cent benefit not anticipated in the original guidance. Analysts from Citi have commented on the semiconductor sector, predicting a decline in overall market expectations due to weak estimates from analog chipmakers and decreased demand for personal computers. Specifically, they anticipate TXN's first-quarter forecast will fall short due to weak industrial demand.

Despite the cautious outlook, options traders are showing optimism, with 10,000 call options traded, double the usual intraday volume. The February 195 call is particularly popular, with many new positions being established. Historically, TXN has only seen its stock price rise in two of the last eight post-earnings sessions, indicating a pattern of volatility following earnings announcements.

TXN's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 36.89, indicating the amount investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 11.65, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 12.41, suggesting how the market values the company's total worth relative to its sales. The debt-to-equity ratio is approximately 0.84, indicating a moderate level of debt relative to equity, while the current ratio of about 4.31 suggests a strong ability to cover short-term liabilities with short-term assets.

Texas Instruments Incorporated (NASDAQ:TXN) is a leading player in the semiconductor industry, known for designing and manufacturing analog and embedded processing chips. The company competes with other major semiconductor firms like Intel and Qualcomm. On January 23, 2025, TXN reported earnings per share (EPS) of $1.30, surpassing the estimated $1.20, and actual revenue of approximately $4.01 billion, exceeding the estimated $3.88 billion.

Despite these positive results, TXN's stock price declined after the earnings forecast failed to meet market expectations, as highlighted by Investopedia. The company's outlook for future earnings was less optimistic, leading to a drop in share value after the market closed. This reaction underscores the importance of forward-looking guidance in influencing investor sentiment.

The financial results for the fourth quarter of 2024 showed a net income of $1.21 billion, with EPS recorded at $1.30, including a 2-cent benefit not anticipated in the original guidance. Analysts from Citi have commented on the semiconductor sector, predicting a decline in overall market expectations due to weak estimates from analog chipmakers and decreased demand for personal computers. Specifically, they anticipate TXN's first-quarter forecast will fall short due to weak industrial demand.

Despite the cautious outlook, options traders are showing optimism, with 10,000 call options traded, double the usual intraday volume. The February 195 call is particularly popular, with many new positions being established. Historically, TXN has only seen its stock price rise in two of the last eight post-earnings sessions, indicating a pattern of volatility following earnings announcements.

TXN's financial metrics provide further insight into its market position. The company has a price-to-earnings (P/E) ratio of approximately 36.89, indicating the amount investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 11.65, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 12.41, suggesting how the market values the company's total worth relative to its sales. The debt-to-equity ratio is approximately 0.84, indicating a moderate level of debt relative to equity, while the current ratio of about 4.31 suggests a strong ability to cover short-term liabilities with short-term assets.

• Texas Instruments (NASDAQ:TXN) is expected to release its quarterly earnings with an EPS of $1.20 and revenue projections of $3.87 billion amidst semiconductor sector challenges.
• Options traders exhibit bullish sentiment towards Texas Instruments, despite historical post-earnings stock performance suggesting caution.
• The company's financial health is highlighted by a P/E ratio of approximately 35.9, a price-to-sales ratio of about 11.34, and a debt-to-equity ratio of approximately 0.84.

Texas Instruments (NASDAQ:TXN), a leading semiconductor company known for its analog and embedded processing products, is set to release its quarterly earnings on January 23, 2025. Analysts expect an earnings per share (EPS) of $1.20 and revenue of approximately $3.87 billion. Despite these projections, the semiconductor sector faces challenges, as highlighted by Citi, due to weak estimates from analog chipmakers and declining demand for personal computers.

Options traders are showing significant interest in Texas Instruments ahead of the earnings report. Notably, 10,000 call options have been exchanged, double the usual intraday volume. The February 195 call option is particularly popular, indicating bullish sentiment among traders. However, historical data shows that Texas Instruments' stock price has only risen in two out of the last eight post-earnings sessions, suggesting caution.

Texas Instruments' earnings per share (EPS) is expected to range between $1.07 and $1.29, with the Zacks Consensus Estimate at $1.19, marking a 20.1% decline from the previous year. Revenue expectations are between $3.7 billion and $4 billion, with a consensus estimate of $3.86 billion, indicating a 5.4% decrease from the same period last year. Despite these anticipated declines, Texas Instruments has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 7.1%.

The company's fourth-quarter performance may be impacted by reduced factory loading and increased manufacturing costs, affecting both the top and bottom lines. Analysts have maintained stable EPS estimates over the past month, suggesting a reassessment of forecasts. This stability in EPS estimates can significantly influence investor reactions to the stock, as historical data shows a strong correlation between trends in earnings estimates and short-term stock price movements.

Texas Instruments has a price-to-earnings (P/E) ratio of approximately 35.9, indicating the price investors are willing to pay for each dollar of earnings. The company's price-to-sales ratio is about 11.34, reflecting the market's valuation of its revenue. Additionally, the enterprise value to sales ratio is around 12.10, suggesting how the market values the company's total worth relative to its sales. The debt-to-equity ratio is approximately 0.84, showing the proportion of debt used to finance the company's assets relative to shareholders' equity.