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What's in Store for Texas Instruments (TXN) in Q1 Earnings?

Zacks Equity Research
·4-min read

Texas Instruments Incorporated TXN is scheduled to report first-quarter 2023 results on Apr 25.

For first-quarter 2023, TXN anticipates revenues to be between $4.17 billion and $4.53 billion. The Zacks Consensus Estimate is pegged at $4.36 billion, suggesting a decline of 11.1% from the year-ago quarter’s reported figure.

Management expects earnings of $1.64-$1.90 per share for the quarter under review. The consensus mark is pegged at $1.76 per share, indicating a fall of 25.1% from the prior-year quarter’s reported figure. The estimate has remained unchanged over the past 30 days.

Texas Instruments’ earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 9.68%, on average.

Texas Instruments Incorporated Price and EPS Surprise

 

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’ strengthening momentum in Embedded Processing segment is likely to have aided its first-quarter performance.

Growing demand for embedded technologies across the automotive and industrial markets  and solid rebound in the automotive market might have been tailwinds.

Further, improving demand environment in the industrial, communication equipment and enterprise systems markets is expected to have been another positive.

Strength in data center and enterprise computing is expected to have driven the company’s revenue growth in the enterprise systems market during the to-be-reported quarter.

TXN’s strong investments in growth avenues, efficient manufacturing strategies and competitive advantages are expected to have been positives.

Texas Instruments’ continuous returns to its shareholders are anticipated to have acted as tailwinds. Its deepening focus to accelerate a free cash flow generation is likely to have been an added positive. The impacts of all these factors are expected to get reflected in the impending first-quarter results.

However, weakness in the company’s Analog segment is expected to impact the upcoming results negatively.

Pandemic-led supply-chain constraints and geopolitical tensions are expected to have weighed on TXN in the quarter under review. Additionally, imposition of new export regulations might have acted as headwind.

Further, sluggishness in the overall demand environment, especially in the personal electronics space might have been a 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 #4 (Sell) and an Earnings ESP of 0.00%.

Stocks to Consider

Here are some companies worth considering from the same space, as our model shows that these have the right combination of elements to beat on earnings in their soon-to-be-reported quarterly results.

Block SQ has an Earnings ESP of +5.22% and a Zacks Rank #3 at present.

Block is set to report first-quarter 2023 results on May 4. The Zacks Consensus Estimate for SQ’s earnings is pegged at 31 cents per share, suggesting an increase of 72.2% from the prior-year reported figure.

Bruker BRKR has an Earnings ESP of +1.21% and a Zacks Rank of 3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Bruker is scheduled to release first-quarter 2023 results on May 3. The Zacks Consensus Estimate for BRKR’s earnings is pegged at 55 cents per share, indicating a rise of 12.2% from the prior-year reported figure.

Perficient PRFT currently has an Earnings ESP of +0.39% and is Zacks #3 Ranked at present.

Perficient is expected to release first-quarter 2023 results on May 2. The Zacks Consensus Estimate for PRFT’s earnings is pegged at $1.04 per share, implying an improvement of 6.1% from the prior-year reported figure.

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

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Zacks Investment Research