S&P 500 (NYSE:SPY) component Texas Instruments, Inc. (NYSE:TXN) will unveil its latest earnings on Monday, April 23, 2012. Texas Instruments designs and makes semiconductors that it sells to electronics designers and manufacturers all over the world.
Texas Instruments, Inc. Earnings Preview Cheat Sheet
Wall St. Earnings Expectations: The average estimate of analysts is for net income of 29 cents per share, a decline of 47.3% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 34 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 29 cents during the last month. Analysts are projecting profit to rise by 19.2% versus last year to $1.73.
Past Earnings Performance: The company’s quarterly results have come in above estimates for the last three quarters. Last quarter, the company booked profit of 41 cents per share versus a mean estimate of net income of 39 cents per share.
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Wall St. Revenue Expectations: Analysts predict a decline of 9.7% in revenue from the year-earlier quarter to $3.06 billion.
Analyst Ratings: 18 out of 33 analysts surveyed (54.5%) have a buy rating on Texas Instruments. This is below the mean analyst rating of 10 competitors, which average 59.9% buy ratings.
A Look Back: In the fourth quarter of the last fiscal year, profit fell 68.4% to $298 million (26 cents a share) from $942 million (77 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 3% to $3.42 billion from $3.52 billion.
After experiencing income drops the past three quarters, the company is hoping to use this earnings announcement to rebound. Net income fell 12.6% in the second quarter of the last fiscal year, by 30% in the third quarter of the last fiscal year and again in the fourth quarter of the last fiscal year.
On the top line, the company is hoping to use this earnings announcement to snap a string of three-straight quarters of revenue declines. Revenue fell 1.1% in the second quarter of the last fiscal year and 7.3% in third quarter of the last fiscal year before falling again in the fourth quarter of the last fiscal year of the last fiscal year.
Stock Price Performance: Between March 19, 2012 and April 17, 2012, the stock price dropped $1.06 (-3.1%), from $33.84 to $32.78. The stock price saw one of its best stretches over the last year between September 8, 2011 and September 16, 2011, when shares rose for seven straight days, increasing 7.8% (+$2) over that span. It saw one of its worst periods between November 16, 2011 and November 25, 2011 when shares fell for seven straight days, dropping 11.7% (-$3.65) over that span.
(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)
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