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What's in the Cards for Texas Instruments' (TXN) Q2 Earnings?

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Texas Instruments Incorporated (TXN - Free Report) is scheduled to report second-quarter 2022 results on Jul 26.

For second-quarter 2022, the company anticipates revenues between $4.2 billion and $4.8 billion. The Zacks Consensus Estimate for the same is pegged at $4.5 billion, suggesting a decline of 1.1% from the year-ago quarter’s reported figure.

Texas Instruments expects earnings of $1.84-$2.26 per share for the second quarter.

The consensus mark for the same is pegged at $2.07 per share, indicating an improvement of 0.9% from the prior-year reported figure. The figure has been unchanged over the past 30 days.

The company surpassed the Zacks Consensus Estimate all the trailing four quarters, delivering an earnings surprise of 9.5%, on average.

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

Texas Instruments’ product portfolio strength and expanding manufacturing capabilities are expected to get reflected in its upcoming quarterly results.

Strengthening momentum across Analog and Embedded Processing segments is likely to have aided the second-quarter performance.

The company’s robust signal chain and power product lines are expected to have continued to aid top-line growth within the Analog segment in the quarter under discussion.

The continued rebound in the automotive industry and strong demand environment in the industrial market are expected to have been a tailwind in the second quarter.

Moreover, solid momentum across major sectors is anticipated to have continued to aid Texas Instruments’ performance in the industrial market in the quarter under review.

The company’s strong investments in growth avenues and competitive advantages are expected to have been positives.

Texas Instrument’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus on accelerating 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 second-quarter results.

However, uncertainties related to the coronavirus pandemic are expected to have been overhangs for the company in the quarter under review.

Softness in the personal electronics space is likely to have been another concern.

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. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Texas Instruments currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some companies, which, per our model, have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.

KLA Corporation (KLAC - Free Report) has an Earnings ESP of +0.24% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

KLA is scheduled to release fourth-quarter fiscal 2022 results on Jul 28. The Zacks Consensus Estimate for KLAC’s earnings is pegged at $5.46 per share, suggesting an increase of 23.2% from the prior year’s reported figure.

Advanced Micro Devices (AMD - Free Report) has an Earnings ESP of +2.14% and a Zacks Rank #3 at present.

Advanced Micro Devices is set to report second-quarter 2022 results on Aug 2. The Zacks Consensus Estimate for AMD’s earnings is pegged at $1.03 per share, which suggests an increase of 63.5% from the prior year’s reported figure.

Aspen Technology (AZPN - Free Report) has an Earnings ESP of +1.40% and a Zacks Rank #2 at present.

Aspen Technology is set to report fourth-quarter fiscal 2022 results on Aug 8. The Zacks Consensus Estimate for ASPN’s earnings is pegged at $2.15 per share, which suggests an increase of 40.5% from the prior-year fiscal period’s reported figure.

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

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