Texas Instruments (TXN) Earnings Release Near

Texas Instruments (NYSE:TXN) is expected to report Q4 earnings after the market close on Monday, January 23, with a conference call scheduled for 5:30 pm ET. The consensus estimate is 39c for EPS and $3.25B for revenue, according to First Call.

The company’s revenues are expected to decline year-over-year, and its EPS is expected to drop by about 50% year-over-year. Texas Instruments issued a profit warning earlier in the quarter, and many feel these declines are already reflect in the share price.

On December 8, the company lowered its Q4 guidance due to lower demand across the majority of its markets. Wireless was one sector which was generating higher demand, the company said. Texas Instruments reduced its Q4 revenue guidance to $3.19B-$3.33B from $3.26B-$3.54B. The company cut its Q4 GAAP EPS outlook to 21c-25c from 28c-36c.

Due to revenue shortfalls, the company decided to reduce production to avoid building excess inventory. As a result, the company’s under-utilization expense will be higher in Q4, putting pressure on its margins. Wedbush believes that, since the semiconductor cycle has bottomed, Texas Instruments’ Q4 results should be largely in-line with the mid-point of its new, lowered guidance ranges. The firm believes that the company’s Q1 outlook, bolstered by improving fundamentals, shouldn’t disappoint investors Wedbush predicts that Texas Instruments will provide constructive commentary about Q1, particularly for its communications and industrial markets.

Texas Instruments’ results will come on the heels of better-than-expected results and guidance from Xilinx (NASDAQ:XLNX) and Linear Tech (NASDAQ:LLTC) last week. Analysts’ consensus EPS estimates for Texas Instruments are 42c and $2.11 for Q1 and FY12, respectively. The consensus revenue estimates are $3.22B and $13.91B for Q1 and FY12, respectively.

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com