What To Expect From Texas Instruments's (TXN) Q4 Earnings

Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting results this Tuesday afternoon. Here’s what to look for.

Texas Instruments beat analysts’ revenue expectations by 1.9% last quarter, reporting revenues of $4.74 billion, up 14.2% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but revenue guidance for next quarter missing analysts’ expectations significantly.

Is Texas Instruments a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.

This quarter, analysts are expecting Texas Instruments’s revenue to grow 11.3% year on year to $4.46 billion, a reversal from the 1.7% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.29 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Instruments has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Texas Instruments’s peers in the semiconductors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Micron delivered year-on-year revenue growth of 56.7%, beating analysts’ expectations by 5%, and Penguin Solutions reported flat revenue, topping estimates by 1.2%. Micron traded up 10.2% following the results while Penguin Solutions was down 13.8%.

Read our full analysis of Micron’s results here and Penguin Solutions’s results here.

There has been positive sentiment among investors in the semiconductors segment, with share prices up 14.3% on average over the last month. Texas Instruments is up 9.9% during the same time and is heading into earnings with an average analyst price target of $194.07 (compared to the current share price of $192.66).

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