Advertisement
Australia markets closed
  • ALL ORDS

    8,153.70
    +80.10 (+0.99%)
     
  • ASX 200

    7,896.90
    +77.30 (+0.99%)
     
  • AUD/USD

    0.6511
    -0.0007 (-0.11%)
     
  • OIL

    83.11
    -0.06 (-0.07%)
     
  • GOLD

    2,254.80
    +16.40 (+0.73%)
     
  • Bitcoin AUD

    107,281.16
    -1,096.97 (-1.01%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • AUD/EUR

    0.6042
    +0.0008 (+0.13%)
     
  • AUD/NZD

    1.0902
    -0.0000 (-0.00%)
     
  • NZX 50

    12,105.29
    +94.63 (+0.79%)
     
  • NASDAQ

    18,254.69
    -26.15 (-0.14%)
     
  • FTSE

    7,952.62
    +20.64 (+0.26%)
     
  • Dow Jones

    39,807.37
    +47.29 (+0.12%)
     
  • DAX

    18,492.49
    +15.40 (+0.08%)
     
  • Hang Seng

    16,541.42
    +148.58 (+0.91%)
     
  • NIKKEI 225

    40,369.44
    +201.37 (+0.50%)
     

Product Strength to Aid Texas Instruments' (TXN) Q3 Earnings

Texas Instruments TXN or TI is scheduled to report third-quarter 2019 results on Oct 22, after market close.

The company surpassed the Zacks Consensus Estimate in all the trailing four quarters, with the average being 5.07%.

Texas Instruments’ performance in the to-be-reported quarter could have been affected by weakness in overall demand, uncertain macro environment, and increased competition in the auto and industrial space. However, strength in several higher-margin and high-growth market areas is expected to have aided its earnings.

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

ADVERTISEMENT

Expectations From Analog

TI’s compelling product line and manufacturing efficiencies, which include growing 300-millimeter Analog output, are likely to have helped this segment to achieve growth during the quarter. However, weak performance of high-volume and power product lines could have affected its earnings. Also, reduced factory loading could have affected the segment’s performance.

The Zacks Consensus Estimate for Analog segment revenues is currently pegged at $2.63 billion, indicating 3.8% year-over-year increase.

Expectations From Embedded Processing

Weak performance of processors and connected microcontrollers, along with reduced factory loadings might have affected its earnings in the to-be-reported quarter.

The Zacks Consensus Estimate for Embedded Processing revenues is currently pegged at $810 million, suggesting an improvement of 2.5% from the year-ago quarter.

Overall Picture

TI has always been a well-executed company. Management remains focused on increasing its free cash flow per share and strengthening competitive advantages. However, increasing competition in the auto and industrial space, along with unfavorable currency impact might have hurt the company’s performance in the third quarter.

What Our Model Says

According to the Zacks model, 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. But that’s not the case here.

Currently, Texas Instruments has a Zacks Rank #4 (Sell) and an Earnings ESP of 0.00%, making surprise prediction difficult. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few stocks that you may want to consider, as our model shows that these have the right combination of elements to post a positive earnings surprise in the quarter to be reported.

Cadence Bancorp CADE has an Earnings ESP of +6.12% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Veoneer, Inc. VNE has an Earnings ESP of +7.14% and a Zacks Rank #2.

Arrow Electronics, Inc. ARW has an Earnings ESP of +0.60% and a Zacks Rank of 3.

7 Best Stocks for the Next 30 Days

Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers “Most Likely for Early Price Pops.”

Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.50% per year. So be sure to give these hand-picked 7 your immediate attention.

See them now >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report
 
Texas Instruments Incorporated (TXN) : Free Stock Analysis Report
 
Veoneer, Inc. (VNE) : Free Stock Analysis Report
 
Cadence Bancorp (CADE) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research