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What's in the Cards for Texas Instruments' (TXN) Q2 Earnings?

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·3 min read
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Texas Instruments Incorporated TXN is scheduled to report second-quarter 2021 results on Jul 21.

For second-quarter 2021, the company anticipates revenues between $4.13 billion and $4.47 billion. The Zacks Consensus Estimate for the same is pegged at $4.34 billion, suggesting growth of 33.9% from the year-ago quarter’s reported quarter.

The company expects earnings of $1.68-$1.92 per share for the secondquarter.

The consensus mark for the same is pegged at $1.82 per share, indicating an improvement of 22.9% from the prior-year reported figure. The figure has moved upward 0.6% over the past 30 days.

The company surpassed the Zacks Consensus Estimate all the trailing four quarters, delivering an earnings surprise of 34.14%, 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’ product portfolio strength and expanding manufacturing capabilities are expected to get reflected in its upcoming quarterly results.

Strengthening momentum across Analog and Embedded Processing segments is likely to have aided Texas Instrument’s second-quarter performance.

The company’s robust signal chain and power product linesare expected to have continued to aidtop-line growth within the Analog segment in the quarter under discussion.

The uptrend in personal electronics, owing to the rising demand for electronic gadgets for remote working, learning and entertainment amid the ongoing pandemic, is likely to have driven growth in the company’s revenues generated from the personal electronics market in the to-be-reported quarter.

The continued rebound in the automotive industry is expected to have been a tailwind in the second quarter.

Solid momentum across major sectors is anticipated to have continued to aid the company’s performance in the industrial market in the quarter under review.

The company’s strong investments in growth avenues and competitive advantages are expected to have been positives.

Texas Instrument’s continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus to accelerate free cash flow generation is likely to have been another positive. The impacts of all these factors are expected to get reflected in the company’s second-quarter results.

However, uncertainties related to the coronavirus pandemic are expected to have been overhangs for the company in the quarter under review.

What Our Model Says

Our proven model conclusively predicts 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 #2 and an Earnings ESP of +1.60%.

Stocks to Consider

Here are some other companies, which, per our model, also have the right combination of elements to post an earnings beat in their soon-to-be-reported quarterly results.

TE Connectivity Ltd. TEL has an Earnings ESP of +0.79% and a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Garmin Ltd. GRMN has an Earnings ESP of +4.54% and a Zacks Rank of 2, currently.

Carrier Global Corporation CARR has an Earnings ESP of +6.44% and a Zacks Rank of 2, currently.


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Texas Instruments Incorporated (TXN) : Free Stock Analysis Report

Garmin Ltd. (GRMN) : Free Stock Analysis Report

TE Connectivity Ltd. (TEL) : Free Stock Analysis Report

Carrier Global Corporation (CARR) : Free Stock Analysis Report

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