Texas Instruments Inc. Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Texas Instruments, Inc. (NYSE:TXN) will unveil its latest earnings on Monday, January 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 39 cents per share, a decline of 39.1% 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 55 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 39 cents during the last month. For the year, analysts are projecting profit of $2.02 per share, a decline of 18.9% from last year.

Past Earnings Performance: The company has beaten estimates the last two quarters and is coming off a quarter where it topped the forecasts by 3 cents, reporting net income of 60 cents per share against a mean estimate of profit of 57 cents. In the second quarter, the company exceeded forecasts by 3 cents with net income of 56 cents versus a mean estimate of profit of 53 cents.

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Wall St. Revenue Expectations: On average, analysts predict $3.25 billion in revenue this quarter, a decline of 7.7% from the year ago quarter. Analysts are forecasting total revenue of $13.57 billion for the year, a decline of 2.9% from last year’s revenue of $13.97 billion.

Analyst Ratings: Analysts are bullish on this stock with 20 analysts rating it as a buy, one rating it as a sell and 12 rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the third quarter, profit fell 30% to $601 million (51 cents a share) from $859 million (71 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 7.3% to $3.47 billion from $3.74 billion.

Key Stats:

The company has seen net income fall in each of the last two quarters. Net income dropped 12.6% in the second quarter.

Revenue has fallen in the past two quarters. In the second quarter, the figure fell 1.1%.

Competitors to Watch: National Semicond. Corp. (NYSE:NSM), Analog Devices, Inc. (NYSE:ADI), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), ON Semiconductor Corp. (NASDAQ:ONNN), Intel Corporation (NASDAQ:INTC), STMicroelectronics N.V. (NYSE:STM), Maxim Integrated Products Inc. (NASDAQ:MXIM), Broadcom Corporation (NASDAQ:BRCM), and Marvell Tech. Group Ltd. (NASDAQ:MRVL).

Stock Price Performance: During December 15, 2011 to January 17, 2012, the stock price had risen $2.56 (9%) from $28.51 to $31.07. 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, rising 7.8% (+$2.01) 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, falling 11.7% (-$3.67) over that span.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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