Texas Instruments Inc. (NYSE:TXN) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 2%.
Texas Instruments Inc. Earnings Cheat Sheet
Results: Adjusted Earnings Per Share decreased 4.55% to $0.42 in the quarter versus EPS of $0.44 in the year-earlier quarter.
Revenue: Decreased 8.64% to $3.05 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Texas Instruments Inc. reported adjusted EPS income of $0.42 per share. By that measure, the company beat the mean analyst estimate of $0.41. It missed the average revenue estimate of $3.06 billion.
Quoting Management: Rich Templeton, TI’s chairman, president and CEO, commented: “Our revenue ended the quarter as expected, up 6 percent sequentially. Excluding legacy wireless, revenue grew 8 percent; our positions in industrial and automotive markets were important contributors to the sequential growth in revenue. Additionally, backlog increased, and with it, visibility into the second half improved.”
Key Stats (on next page)…
Revenue increased 5.62% from $2.89 billion in the previous quarter. EPS increased 31.25% from $0.32 in the previous quarter.
Looking Forward: Analysts have a more positive outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has risen from a profit of $0.48 to a profit $0.51. For the current year, the average estimate has moved up from a profit of $1.62 to a profit of $1.71 over the last ninety days.
Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.
(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)