Dallas, Texas-based Texas Instruments Incorporated (TXN) designs, manufactures, and sells semiconductors to electronics designers and manufacturers. Valued at a market cap of $137.8 billion, the company is an original equipment manufacturer of analog, mixed signal and digital signal processing (DSP) integrated circuits. It is expected to announce its fiscal Q1 earnings for 2025 after the market closes on Wednesday, Apr. 23.
Prior to this event, analysts project this semiconductor giant to report a profit of $1.06 per share, down 11.7% from $1.20 per share in the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $1.30 per share in the previous quarter topped the consensus estimate by a notable margin of 9.2%.
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For the full year, analysts expect TXN to report EPS of $5.35, up 2.9% from $5.20 in fiscal 2024. Its EPS is expected to further grow 20.4% year over year to $6.44 in fiscal 2026.
TXN has underperformed the S&P 500 Index’s ($SPX) 1.4% decline over the past 52 weeks, with its shares down 10.2% during this period. However, it has marginally outpaced the Technology Select Sector SPDR Fund’s (XLK) 10.7% downtick over the same time frame.
On Apr. 4, shares of TXN tumbled 7.8% after China announced a 34% tariff on all U.S. imports, intensifying trade war tensions. This move was especially rough for the U.S. chipmakers like TXN as a significant portion of their revenue depends on demand from the Chinese market.
On Jan. 23, Texas Instruments reported its Q4 results, but despite exceeding expectations with net income of $1.30 per share and revenue of $4 billion, the stock fell 7.5% the following day. The negative market reaction was likely driven by year-over-year declines in its top and bottom-line figures. A key contributor to this decline was its embedded processing segment, which saw a notable 18.5% drop in revenue and a sharp 70.3% decline in operating profit, significantly impacting the company's overall performance.
Wall Street analysts are moderately optimistic about TXN’s stock, with a "Moderate Buy" rating overall. Among 29 analysts covering the stock, 10 recommend "Strong Buy," 16 suggest “Hold,” one advises a “Moderate Sell,” and two give “Strong Sell” rating. The mean price target for TXN is $209.18 which indicates a notable 38.2% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
