Back to top

Image: Bigstock

Texas Instruments to Post Q4 Earnings: What's in Store for the Stock?

Read MoreHide Full Article

Texas Instruments (TXN - Free Report) is scheduled to report fourth-quarter 2024 results on Jan. 23, after market close.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

Texas Instruments expects earnings per share between $1.07 and $1.29. The Zacks Consensus Estimate for fourth-quarter earnings is pinned at $1.19 per share, which indicates a year-over-year decline of 20.1%.

The company anticipates revenues between $3.70 billion and $4 billion for the fourth quarter. The Zacks Consensus Estimate is pegged at $3.86 billion, suggesting a drop of 5.4% from the year-ago period's reported figure.

TXN’s earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 7.1%.

Factors to Consider for TXN

Texas Instruments' rising manufacturing costs due to planned capacity expansions and decreased factory loadings are likely to have been a major headwind for the company’s business in the quarter-to-be reported.

It is anticipated that a declining demand environment, mostly brought on by customers cutting back on inventory, is likely to have a detrimental effect on the Analog and Embedded Processing segments' performance during the fourth quarter.

The Zacks Consensus Estimate for Analog revenues is pegged at $3.05 billion, suggesting a decline of 2.2% from the year-ago reported figure. The consensus mark for Embedded Processing revenues is pinned at $576 million, indicating a fall of 23.4% from the prior-year quarter’s actual.

Also, the automotive segment is likely to suffer in the fourth quarter. Strength in China is persistent and visible from the adoption of electric vehicles, which won’t suffice the segment's performance across regions and markets. Nonetheless, the top-line growth was probably aided by the recovery of communication equipment, the strength of personal electronics and enterprise systems.

It is anticipated that Texas Instruments' performance during the to-be-reported quarter was significantly influenced by its robust investments in growth avenues, such as manufacturing, technology and product portfolio expansion.

What Our Proven Model Says for TXN’s Q4 Earnings

Our proven model does not conclusively predict an earnings beat for Texas Instruments this time. According to the Zacks model, the combination of a positive Earnings ESP and Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

TXN has an Earnings ESP of 0.00% and carries a Zacks Rank #4 (Sell) at present. 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 stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

ServiceNow (NOW - Free Report) has an Earnings ESP of +1.04% and sports a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

It is set to report fourth-quarter results on Jan. 29. The Zacks Consensus Estimate for NOW’s fourth-quarter 2024 earnings per share is pegged at $3.60, unchanged over the past 60 days. NOW shares have risen 42.4% over the past year.

BILL Holdings, Inc. (BILL - Free Report) has an Earnings ESP of +1.68% and flaunts a Zacks Rank #1 at present. 

It is set to report second-quarter fiscal 2025 results on Feb. 13. The Zacks Consensus Estimate for BILL’s second-quarter fiscal 2025 earnings is pegged at 46 cents per share, up by a couple of pennies over the past 60 days, indicating a fall of 27% from the year-ago quarter’s reported figure. BILL shares have gained 18.3% over the past year.

DoorDash (DASH - Free Report) has an Earnings ESP of +39.05% and carries a Zacks Rank #2 at present. 

It is set to report fourth-quarter 2024 results on Feb. 11. The Zacks Consensus Estimate for DASH’s fourth-quarter earnings is pegged at 34 cents per share, unchanged over the past 30 days, indicating a rise of 187.2% from the year-ago quarter’s reported figure. DASH shares have surged 66.7% over the past year.

Published in