What to Expect From Texas Instruments

Seth Jayson, The Motley Fool
Updated

Texas Instruments (NAS: TXN) is expected to report Q2 earnings on July 23. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Texas Instruments' revenues will wane -3.3% and EPS will drop -34.4%.

The average estimate for revenue is $3.34 billion. On the bottom line, the average EPS estimate is $0.40.


Revenue details
Last quarter, Texas Instruments recorded revenue of $3.12 billion. GAAP reported sales were 8.0% lower than the prior-year quarter's $3.39 billion.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.33. GAAP EPS of $0.22 for Q1 were 60% lower than the prior-year quarter's $0.55 per share.

anImage
anImage

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 47.6%, 420 basis points worse than the prior-year quarter. Operating margin was 16.5%, 1,120 basis points worse than the prior-year quarter. Net margin was 8.5%, 1,110 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $13.57 billion. The average EPS estimate is $1.72.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,540 members rating the stock outperform, and 119 members rating it underperform. Among 349 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 326 give Texas Instruments a green thumbs-up, and 23 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Instruments is outperform, with an average price target of $35.39.

New mobile devices are changing the game, and potential profitability, at many semiconductor companies. Some will fail, some will tread water, and those in the right devices will shine. Where does Texas Instruments fit in? Who will lead going forward? Check out "3 Hidden Winners of the iPhone, iPad, and Android Revolution." Click here for instant access to this free report.

The article What to Expect From Texas Instruments originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Advertisement