Texas Instruments Inc. (NASDAQ: TXN) is scheduled to release its fourth-quarter financial results after the markets close on Wednesday. The consensus estimates are calling for $1.02 in earnings per share (EPS) and $3.22 billion in revenue. In the same period of last year, the Dallas-based semiconductor maker said had $1.27 in EPS and $3.72 billion in revenue.
The stock was crushed after posting solid third-quarter results, with guidance being what really brought down the stock. Following that report, Jefferies weighed in on the company and its fourth-quarter outlook:
We believe Texas Instruments lowering its fourth quarter outlook is more of a catch-up to peers than a foreshadowing of negative cuts for the group. As the company runs 2/3 of its revs through its consignment inventory program vs. 10-20% for its peer group, it makes sense to us that the company would report downward revisions to estimates later than its peer group this inventory cycle. We argue that a proactive inventory destock should impact semis with traditional distribution models before it impacts semis with consignment inventory models. As such, we believe the pullback in shares post-earnings last week presents a compelling buying opportunity.
Jefferies has a Buy rating with a $150 price target, outpacing most other analysts, who seem to be on the sideline.
Excluding Wednesday’s move, Texas Instruments has outperformed the broad markets with the stock up about 32% in the past 52 weeks. However, in just the past quarter alone, the stock is only up 1%.
A few analysts weighed in on Texas Instruments ahead of the report:
- Morgan Stanley has an Equal Weight rating with a $119 price target.
- UBS Group has a Sell rating with a $110 target price.
- Deutsche Bank has a Hold rating and a $115 price target.
- Goldman Sachs rates it as Neutral rating a $111 price target.
- RBC has a Sector Perform rating and a $124 price target.
- Mizuho’s Neutral rating comes with a $113 target price.
Shares of Texas Instruments were last seen up about 2% at $133.25, in a 52-week range of $94.81 to $133.33. The consensus price target is $129.00.
Take This Retirement Quiz To Get Matched With A Financial Advisor (Sponsored)
Take the quiz below to get matched with a financial advisor today.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the
advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Take the retirement quiz right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
