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Texas Instruments (TXN) Loses 0.3% Ahead of Earnings: What To Expect
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Shares of Texas Instruments (TXN - Free Report) lost about 0.3% during regular hours Monday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed apathy ahead of the report, but this is certainly still a stock to watch once the full results are in.
Texas Instruments posted solid numbers in its previous earnings report, beating both earnings and revenue expectations. Earnings surged 36% year-over-year while revenues increased 11.4%.
TXN is expected to continue performing well on the back of strength in the high-margin and high-growth analog and embedded processing markets. It continues to make shrewd investments to bolster its capabilities in these areas, while also expanding its overall exposure to the industrial and automotive markets. The upcoming earnings report will be a key indicator of overall progress for the historically well-run semiconductor company.
According to our latest Zacks Consensus Estimates, analysts expect Texas Instruments to report earnings of $1.31 per share on $3.95 billion in revenue. These results would mark year-over-year growth of 27.1% and 7.1% respectively.
Investors should also note that TXN’s consensus earnings projection has trended upward over the course of the quarter. The firm has seen positive revisions across the board for the current quarter, next quarter, current year, and next year. Furthermore, all of these revisions have come in just the last week. This strongly optimistic revision activity has contributed to the stock’s Zacks Rank #2 (Buy).
Looking at share price performance, TXN has gained 16.9% over the past year. The company has also seen solid growth in 2018, gaining nearly 10% on a year-to-date basis. More recently, shares have soared about 16.5% over the trailing 12 weeks.
A strong earnings beat might be what TXN needs to continue its bullish momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Texas Instruments currently has an Earnings ESP of 0.96%. This, combined with its Zacks Rank, leaves us optimistic about its chances at beating earnings estimates on Tuesday. It is also worth noting that TXN has notched 12 quarters of earnings outperformance in a row.
Make sure to check back here for our full analysis once Texas Instruments reports!
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Texas Instruments (TXN) Loses 0.3% Ahead of Earnings: What To Expect
Shares of Texas Instruments (TXN - Free Report) lost about 0.3% during regular hours Monday, the last day of trading before it releases its latest quarterly earnings report. Investors displayed apathy ahead of the report, but this is certainly still a stock to watch once the full results are in.
Texas Instruments posted solid numbers in its previous earnings report, beating both earnings and revenue expectations. Earnings surged 36% year-over-year while revenues increased 11.4%.
TXN is expected to continue performing well on the back of strength in the high-margin and high-growth analog and embedded processing markets. It continues to make shrewd investments to bolster its capabilities in these areas, while also expanding its overall exposure to the industrial and automotive markets. The upcoming earnings report will be a key indicator of overall progress for the historically well-run semiconductor company.
According to our latest Zacks Consensus Estimates, analysts expect Texas Instruments to report earnings of $1.31 per share on $3.95 billion in revenue. These results would mark year-over-year growth of 27.1% and 7.1% respectively.
Investors should also note that TXN’s consensus earnings projection has trended upward over the course of the quarter. The firm has seen positive revisions across the board for the current quarter, next quarter, current year, and next year. Furthermore, all of these revisions have come in just the last week. This strongly optimistic revision activity has contributed to the stock’s Zacks Rank #2 (Buy).
Looking at share price performance, TXN has gained 16.9% over the past year. The company has also seen solid growth in 2018, gaining nearly 10% on a year-to-date basis. More recently, shares have soared about 16.5% over the trailing 12 weeks.
A strong earnings beat might be what TXN needs to continue its bullish momentum. To gauge how likely the company is to outperform estimates tomorrow morning, we can turn to our exclusive Earnings ESP figure.
Zacks Earnings ESP (Expected Surprise Prediction) compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter. The Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change.
This is done because, generally speaking, when an analyst posts an estimate right before an earnings release, it means that they have fresh information which could potentially be more accurate than what analysts thought about a company two or three months ago.
A positive Earnings ESP paired with a Zacks Rank #3 (Hold) or better ranking helps us feel confident about the potential for an earnings beat. In fact, our 10-year backtest has revealed that this methodology has accurately produced a positive surprise 70% of the time.
Texas Instruments currently has an Earnings ESP of 0.96%. This, combined with its Zacks Rank, leaves us optimistic about its chances at beating earnings estimates on Tuesday. It is also worth noting that TXN has notched 12 quarters of earnings outperformance in a row.
Make sure to check back here for our full analysis once Texas Instruments reports!
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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