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What's in Store for Texas Instruments (TXN) in Q1 Earnings?

Texas Instruments Incorporated TXN is scheduled to report first-quarter 2024 results on Apr 23.

For first-quarter 2024, Texas Instruments expects revenues between $3.45 billion and $3.75 billion. The Zacks Consensus Estimate is pegged at $3.61 billion, suggesting a decline of 17.7% from the year-ago quarter’s reported figure.

Management expects earnings between 96 cents and $1.16 per share for the quarter under review. The consensus mark is pegged at $1.06 per share, indicating a fall of 42.7% from the prior-year quarter’s reported figure. The estimate has been unchanged over the past 30 days.

TXN’s earnings surpassed the Zacks Consensus Estimate in three of the trailing four quarters and missed the same on one occasion, delivering an earnings surprise of 3.2%, on average.

Texas Instruments Incorporated Price and EPS Surprise

 

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

Increasing demand for analog and embedded technologies across the automotive and industrial markets is likely to have been a tailwind. This is expected to have aided growth in the chip content per application in the first quarter.

The growing momentum of Texas Instruments in the enterprise systems market is anticipated to have been a plus.

Expanding manufacturing capabilities are expected to have benefited the quarterly performance.

The company’s strong investments in growth avenues and competitive advantages, including manufacturing, technology and product portfolio expansion, are expected to have been positives.

Texas Instruments’ 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 get reflected in the company’s first-quarter results.

However, macroeconomic uncertainties and geopolitical tensions are anticipated to have weighed on TXN in the quarter under review.

Widespread weakness in the industrial and communication equipment markets is likely to have been a major headwind.

A weakening demand environment primarily due to inventory reductions by customers is expected to have impacted the performance of the Analog and Embedded Processing segments in the quarter to be reported.

The Zacks Consensus Estimate for Analog revenues is pegged at $2.69 billion, suggesting a decline of 18.2% from the year-ago reported figure.

The consensus mark for Embedded Processing revenues is pinned at $715.28 million, indicating a fall of 14% from the prior-year quarter’s actual.

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. That is not the case here, as elaborated below.

Texas Instruments currently has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in the soon-to-be-reported quarterly results.

AZZ AZZ has an Earnings ESP of +7.14% and it carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.

AZZ is scheduled to release fourth-quarter fiscal 2024 results on Apr 22. The Zacks Consensus Estimate for AZZ’s earnings is pegged at 70 cents per share, suggesting a jump from the prior-year quarter’s reported figure of 30 cents per share.

AptarGroup ATR has an Earnings ESP of +0.59% and a Zacks Rank #2 at present.

AptarGroup is set to announce first-quarter 2024 results on Apr 25. The Zacks Consensus Estimate for ATR’s earnings is pinned at $1.13 per share, indicating growth of 19% from the year-ago quarter’s reported number.

Cardinal Health CAH has an Earnings ESP of +0.34% and a Zacks Rank #3 at present.

CAH is scheduled to release third-quarter fiscal 2024 results on May 2. The Zacks Consensus Estimate for CAH’s earnings is pegged at $1.96 per share, indicating growth of 12.6% from the year-ago quarter’s reported figure.

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

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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

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