Earnings Preview: Texas Instruments Reports Q4 Results Monday

Jan.18.12 | About: Texas Instruments (TXN)

Texas Instruments Incorporated (NYSE:TXN) is expected to report earnings for last fiscal quarter after the closing bell on January 23, 2012.

Texas Instruments Incorporated engages in the design and sale of semiconductors to electronics designers and manufacturers worldwide. The company was founded in 1938 and is headquartered in Dallas, Texas. TXN trades an average of 7.5 million shares per day.

52 Week High: $36.71
52 Week Low: $24.34
Book Value: $9.65
Float Short: 1.42%

On average, 21 analysts are expecting a drop of $-0.12 in earnings per share compared to last quarter's results of $0.51. The reporting quarter's estimated mean earnings are $0.39 per share. Analyst estimates range between $0.37 and $0.51 per share.

The stock jumped about 7% today, as of this writing, in part from other industry reporting above expectations. I expect a beat of the mean and likely near the top of estimates or above. Today's price move ahead of earnings suggest investors are in agreement with what to expect next week with earnings and guidance. Technically, the break higher is very bullish, and while the price may retrace, the stock is in a strong trend higher.

Investors have been rewarded with an increase of year-over-year revenue. Revenue reported was $13.97 billion for 2010 vs. $10.43 billion for 2009. The bottom line has rising earnings year-over-year of $3.23 billion for 2010 vs. $1.47 billion for 2009. The company's earnings before interest and taxes are rising, with an EBIT year-over-year of $4.51 billion for 2010 vs. $1.99 billion for 2009. Rising revenue along with rising earnings is a very good sign, and what we want to see with our companies. Be sure to check the margins to make sure that the bottom line is keeping up with the top line.

Here is a look at the fiscal year revenue:

paid2trade.com revenue gross bar chart for TXN Click to enlarge

Gross reported revenue compared to the mean estimate (rounded):

Fiscal Quarter Ending Month-Year Revenue Estimates Actual $ Difference Difference %
Sep-11 $ 3.32 B $ 3.47 B $ 149.95 M 4.52%
Jun-11 $ 3.44 B $ 3.46 B $ 16.33 M 0.47%
Mar-11 $ 3.39 B $ 3.39 B $ -2.28 M -0.07%
Dec-10 $ 3.50 B $ 3.52 B $ 20.30 M 0.58%
Sep-10 $ 3.69 B $ 3.74 B $ 50.14 M 1.36%
Click to enlarge

M = millions, B = billions.
Differences are rounded.
Some onetime items are often excluded in reported EPS.

paid2trade.com Quarterly Estimates And Actual EPS results TXN Click to enlargeReported earnings per share compared to the mean estimate. Differences are rounded.

I use a proprietary blend of technical analysis, financial crowd behavior, and fundamentals in my short-term trades, and while not totally the same in longer swing trades to investments, the concepts used are similar. You may want to use this article as a starting point of your own research with your financial planner. I use Seeking Alpha, Edgar Online, and Yahoo Finance for most of my data. I use the confirmed symbols from earnings.com that I believe to be of the most interest.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.