Earnings Preview: Texas Instruments

| About: Texas Instruments (TXN)

Texas Instruments (NYSE:TXN) is expected to report Q1 earnings after the market close on Monday, April 23, with a conference call scheduled for 5:30 pm ET.


The consensus estimate is 29c for EPS and $3.06B for revenue, according to First Call. For three straight quarters, the company has reported falling net income and revenue versus year ago results -- but exceeded analyst expectations. However, on Texas Instruments, or TI's, mid-quarter update the company lowered its Q1 EPS/revenue outlooks. TI lowered its Q1 EPS outlook to 15c-19c from 16c-24c, and revenue to $2.99B-$3.11B from $3.02B-$3.28B. TI cited lower demand for wireless products for the lowered outlook -- primarily from OMAP processors and connectivity products. The company said there was no change to the timing of recovery and it did not see a bottleneck with foundries forthcoming.

Analyst Views

Wedbush believes TI will likely report Q1 results largely in-line with the midpoint of its lowered guidance ranges, the Street's, and its estimates of 29c on $3.06B in revenue. The firm looks for Q2 guidance likely to be in-line, with expectations driven by improving demand trends, particularly in Analog. Wedbush believes that with the semiconductor industry's recovery under way, that TI should benefit from improving booking trends, the book-to-bill ratio will likely be above 1.0, particularly in Analog, and a return to growth in OMAP.