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Texas Instruments (TXN) to Post Q3 Earnings: What's in Store?
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Texas Instruments Incorporated (TXN - Free Report) is scheduled to report third-quarter 2021 results on Oct 26.
For third-quarter 2021, the company anticipates revenues between $4.40 billion and $4.76 billion. The Zacks Consensus Estimate for the same is pegged at $4.69 billion, suggesting growth of 23% from the year-ago quarter’s reported figure.
The company expects earnings of $1.87-$2.13 per share for the third quarter.
The consensus mark for the same is pegged at $2.06 per share, indicating an improvement of 42.1% from the prior-year reported figure. The figure has moved upward 0.9% over the past 30 days.
The company surpassed the Zacks Consensus Estimate all the trailing four quarters, delivering an earnings surprise of 20.25%, on average.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments’ third-quarter performance is expected to have benefited from a strong demand environment across personal electronics, automotive and industrial end-markets.
Solid momentum across major sectors is anticipated to have continued to aid the company’s performance in the industrial market in the quarter under review.
The booming automotive market and continued recovery in it are expected to have been tailwinds in the third quarter.
The rising demand for electronic gadgets for remote working, learning and entertainment amid the pandemic is the primary factor behind the uptrend in the personal electronics market. This is likely to have driven growth in the company’s revenues generated from this market in the to-be-reported quarter.
Apart from this, Texas Instruments’ product portfolio strength and expanding manufacturing capabilities are expected to get reflected in its upcoming quarterly results. Further, its strong investments in growth avenues and competitive advantages are expected to have been positives.
The strengthening momentum across Analog and Embedded Processing segments is likely to have benefited the company’s third-quarter performance further.
Robust signal chain and power product lines are expected to have continued to aid top-line growth for the Analog segment in the quarter under discussion.
Texas Instrument’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus to accelerate free cash flow generation is likely to have been another positive.
However, uncertainties related to the coronavirus pandemic are expected to have been overhangs for the company in the quarter under review.
What Our Model Says
Our proven model conclusively predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Texas Instruments has an Earnings ESP of +9.22% and a Zacks Rank #2 at present.
Other Stocks to Consider
Here are some other stocks that you may consider as our model shows that these too have the right combination of elements to beat on earnings this season.
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Texas Instruments (TXN) to Post Q3 Earnings: What's in Store?
Texas Instruments Incorporated (TXN - Free Report) is scheduled to report third-quarter 2021 results on Oct 26.
For third-quarter 2021, the company anticipates revenues between $4.40 billion and $4.76 billion. The Zacks Consensus Estimate for the same is pegged at $4.69 billion, suggesting growth of 23% from the year-ago quarter’s reported figure.
The company expects earnings of $1.87-$2.13 per share for the third quarter.
The consensus mark for the same is pegged at $2.06 per share, indicating an improvement of 42.1% from the prior-year reported figure. The figure has moved upward 0.9% over the past 30 days.
The company surpassed the Zacks Consensus Estimate all the trailing four quarters, delivering an earnings surprise of 20.25%, on average.
Texas Instruments Incorporated Price and EPS Surprise
Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote
Factors to Consider
Texas Instruments’ third-quarter performance is expected to have benefited from a strong demand environment across personal electronics, automotive and industrial end-markets.
Solid momentum across major sectors is anticipated to have continued to aid the company’s performance in the industrial market in the quarter under review.
The booming automotive market and continued recovery in it are expected to have been tailwinds in the third quarter.
The rising demand for electronic gadgets for remote working, learning and entertainment amid the pandemic is the primary factor behind the uptrend in the personal electronics market. This is likely to have driven growth in the company’s revenues generated from this market in the to-be-reported quarter.
Apart from this, Texas Instruments’ product portfolio strength and expanding manufacturing capabilities are expected to get reflected in its upcoming quarterly results. Further, its strong investments in growth avenues and competitive advantages are expected to have been positives.
The strengthening momentum across Analog and Embedded Processing segments is likely to have benefited the company’s third-quarter performance further.
Robust signal chain and power product lines are expected to have continued to aid top-line growth for the Analog segment in the quarter under discussion.
Texas Instrument’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus to accelerate free cash flow generation is likely to have been another positive.
However, uncertainties related to the coronavirus pandemic are expected to have been overhangs for the company in the quarter under review.
What Our Model Says
Our proven model conclusively predicts 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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Texas Instruments has an Earnings ESP of +9.22% and a Zacks Rank #2 at present.
Other Stocks to Consider
Here are some other stocks that you may consider as our model shows that these too have the right combination of elements to beat on earnings this season.
Amphenol Corporation (APH - Free Report) has an Earnings ESP of +1.02% and a Zacks Rank of 3, currently. You can see the complete list of today’s Zacks #1 Rank stocks here.
CACI International (CACI - Free Report) has an Earnings ESP of +4.43% and a Zacks Rank of 2 at present.
Fortive Corporation (FTV - Free Report) has an Earnings ESP of +0.15% and a Zacks Rank of 3, at present.