Yahoo Finance Texas Instruments Incorporated Beat Analyst Estimates: See What The Consensus Is Forecasting For This Year
It's been a good week for Texas Instruments Incorporated (NASDAQ:TXN) shareholders, because the company has just released its latest quarterly results, and the shares gained 5.5% to US$175. It looks like a credible result overall - although revenues of US$3.7b were in line with what the analysts predicted, Texas Instruments surprised by delivering a statutory profit of US$1.20 per share, a notable 12% above expectations. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.
Check out our latest analysis for Texas Instruments
Following the recent earnings report, the consensus from 29 analysts covering Texas Instruments is for revenues of US$15.7b in 2024. This implies a small 6.3% decline in revenue compared to the last 12 months. Statutory earnings per share are expected to nosedive 20% to US$5.15 in the same period. Before this earnings report, the analysts had been forecasting revenues of US$15.6b and earnings per share (EPS) of US$5.05 in 2024. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.
It will come as no surprise then, to learn that the consensus price target is largely unchanged at US$176. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. The most optimistic Texas Instruments analyst has a price target of US$225 per share, while the most pessimistic values it at US$115. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.
Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that revenue is expected to reverse, with a forecast 8.3% annualised decline to the end of 2024. That is a notable change from historical growth of 6.3% over the last five years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 17% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Texas Instruments is expected to lag the wider industry.
The Bottom Line
The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Texas Instruments' revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$176, with the latest estimates not enough to have an impact on their price targets.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Texas Instruments analysts - going out to 2026, and you can see them free on our platform here.
Before you take the next step you should know about the 2 warning signs for Texas Instruments (1 makes us a bit uncomfortable!) that we have uncovered.
Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
