Texas Instruments is scheduled to report earnings after Thursday’s close. The stock hit a record high of $220.39/share in 2024 and it is currently trading near $197. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting.
Earnings Preview
The company is expected to report a gain of $1.19/share on $3.86 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.25/share. The Whisper number is the Street’s unofficial view on earnings.
A Closer Look At The Fundamentals
The company has managed to grow its earnings nicely over the last few years. In 2017, the company earned $4.26, and in 2023 the company earned $7.07, which is healthy growth. However, earnings are expected to slide to $5.10 in 2024 and then grow to $5.78 in 2025. Growth investors want to see more growth going forward. The company sports a price to earnings (P/E) ratio of 36, which is 1.4x the S&P 500.
A Closer Look At The Technicals
Technically, the stock is trading around 10% below its 52-week high and currently trading just above its 50 and its 200 day moving average lines. The stock is not that far away from its all-time high of $220.39. The bulls want to see the stock gap up and rally after reporting earnings and the bears want to see it gap down and fall.
History
Texas Instruments has a rich history spanning nearly a century. The company’s roots can be traced back to 1930 when it was founded as Geophysical Service Inc., focusing on seismic exploration technology for the oil industry. In 1951, the company officially became known as Texas Instruments and entered the semiconductor industry by obtaining a license to build transistors.
TI achieved several significant milestones, including producing the first commercial silicon transistors in 1954 and inventing the integrated circuit in 1958, thanks to the work of Jack Kilby.
Throughout the 1960s and 1970s, TI expanded its product range, developing technologies such as hand-held calculators, speech synthesis devices, and home computers. Despite facing challenges in the 1980s due to market competition, TI continued to innovate and adapt, eventually becoming a global leader in semiconductor manufacturing.
Company Mission
Texas Instruments’ mission is to create a better world by making electronics more affordable through semiconductors.
Company Profile
Texas Instruments Incorporated designs, manufactures, and sells semiconductors to electronics designers and manufacturers in the United States and internationally. The company operates through Analog and Embedded Processing segments.
The Analog segment offers power products to manage power requirements across various voltage levels, including battery-management solutions, DC/DC switching regulators, AC/DC and isolated controllers and converters, power switches, linear regulators, voltage references, and lighting products. This segment provides signal chain products that sense, condition, and measure signals to allow information to be transferred or converted for further processing and control, including amplifiers, data converters, interface products, motor drives, clocks, and logic and sensing products.
The Embedded Processing segment offers microcontrollers that are used in electronic equipment; digital signal processors for mathematical computations; and applications processors for specific computing activity. This segment offers products for use in various markets, such as industrial, automotive, personal electronics, communications equipment, enterprise systems, and calculators and other.
It provides DLP products primarily for use in project high-definition images; calculators; and application-specific integrated circuits. The company markets and sells its semiconductor products through direct sales and distributors, as well as through its website. Texas Instruments Incorporated was founded in 1930 and is headquartered in Dallas, Texas.
Pay Attention To How The Stock Reacts To The News
From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.
Disclosure: The stock has been featured on FindLeadingStocks.com