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Texas Instruments Inc. (TXN) is scheduled to report its Q2 2012 results on July 23, 2012, after the bell. The street expects EPS and revenue of $0.41 and $3.35B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from TXN and the news from its closest competitors.

Texas Instruments Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $0.32 EPS, beating analyst estimates of $0.29.

Texas Instruments Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is $0.41 based on 31 analysts' estimates, down from $0.57 a year ago. Revenue estimates are $3.35B, down from $3.46B a year ago. The median target price by analysts for the stock is $34.00.

Average recommendation: Overweight

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On July 15, 2012, FBR Capital downgraded the company from Mkt Perform to Underperform.
  • On June 26, 2012, Northland Securities initiated Market Perform rating for the company.
  • On June 12, 2012, UBS reiterated Neutral rating for the company.
  • On June 11, 2012, National Securities upgraded the company from Neutral to Buy.
  • On April 24, 2012, FBR Capital reiterated Mkt Perform rating for the company.
  • On April 1, 2012, UBS downgraded the company from Buy to Neutral.
  • On March 11, 2012, Avian initiated Positive rating for the company.
  • On March 9, 2012, RBC Capital Mkts reiterated Outperform rating for the company.
  • On January 19, 2012, Needham downgraded the company from Buy to Hold.

Latest News

  • On June 11, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it currently expects revenue to be in the range of $3.28-3.42 billion compared with the prior range of $3.22-3.48 billion and EPS to be in the range of $0.32-0.36 compared with the prior range of $0.30-0.38.
  • On April 23, 2012, Texas Instruments Incorporated announced that for the second quarter of 2012, it expects revenue to be in the range of $3.22-$3.48 billion and Earnings per share (EPS) to be in the range of $0.30-$0.38. The second quarter's results will be negatively affected by about $100 million of acquisition charges and about $10 million of restructuring charges.
  • On April 14, 2012, Texas Instruments Incorporated announced that it will become a component of the NASDAQ-100 Index and the NASDAQ-100 Equal Weighted Index prior to market open on April 23, 2012.
  • On March 12, 2012, Texas Instruments Incorporated and iRobot Corp announced a partnership to develop robotic technologies using TI's smart multicore OMAP platform. The two companies will achieve this vision by leveraging iRobot's long history in advancing the field of robotics and TI's strength in applications processors and related technologies.
  • On March 8, 2012, Texas Instruments Incorporated announced that for the first quarter of 2012, it lowered its expected ranges for revenue and earnings per share . The reductions are due to lower demand for Wireless products.
  • On January 23, 2012, Texas Instruments Incorporated announced that for the first quarter of fiscal 2012, it expects revenue to be between $3.02-$3.28 billion and earnings per share of $0.16-$0.24. According to I/B/E/S Estimates, analysts are expecting the Company to report revenues of $3.23 billion for the first quarter of 2012.
  • On January 19, 2012, Texas Instruments Incorporated announced that the Board of Directors has declared a quarterly cash dividend of $0.17 per share of common stock, payable February 13, 2012, to stockholders of record on January 31, 2012.

Competitors

Analog Devices (ADI), Broadcom (BRCM), Cirrus Logic (CRUS), QUALCOMM (QCOM), and STMicroelectronics (STM) are considered major competitors for Texas Instruments and the table below provides the key metrics for these companies and the industry.

Texas Instruments Inc. key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies for the last one year period.

(click to enlarge)TXN Chart

TXN data by YCharts

Competitors' Latest Development

  • On July 5, 2012, Broadcom Corporation And Emulex Corporation announced that the companies have entered into a partial settlement and worldwide patent license agreement relating to the patent litigation in the U.S. Federal District Court in Santa Ana, California.
  • On July 3, 2012, Dow Jones reported that MIPS Technologies Inc. has signed a $26.5 million agreement that allows Broadcom Corp. to license its patents. Additionally, Broadcom--a semiconductor technology provider and MIPS' customer--has extended its license of the Company's architecture and core licenses.
  • On July 2, 2012, STMicroelectronics NV and Harbin Institute of Technology (HIT), a Chinese university, announced the opening of a joint laboratory to encourage innovation in electronics.
  • On June 28, 2012, STMicroelectronics N.V. announced that it has expanded its sensor portfolio with an ultra-compact, high-performance e-compass module. The integration of motion and magnetic sensing in a tiny 3x3x1mm package opens new possibilities for advanced navigation and location-based services in ever-sleeker portable consumer devices.
  • On June 27, 2012, Broadcom Corporation announced that Wi-Fi Alliance selected Broadcom for its Wi-Fi CERTIFIED Passpoint Test Bed.
  • On June 27, 2012, QUALCOMM Inc. and Akamai Technologies, Inc. announced that the two companies are collaborating on the implementation of new protocol enhancements for mobile devices.
  • On June 26, 2012, STMicroelectronics N.V. announced that it is now delivering the first samples of its new STM32 F3 series of microcontrollers to OEM customers, enabling early evaluation of this new line in ST's product family featuring the ARMR Cortex-M core embedded.
  • On June 18, 2012, QUALCOMM Inc. announced that it has acquired Summit Microelectronics (Summit), a developer and provider of programmable power integrated circuits based in Sunnyvale, CA. All employees of Summit Microelectronics have joined Qualcomm's CDMA Technologies division.
  • On June 14, 2012, STMicroelectronics NV announced the introduction of the "Mystique" family of products, a high-speed active-protocol bi-directional converters for managing audio and video signals between DisplayPort and HDMI, two digital-display interface technologies used in computer and consumer electronics.
  • On June 13, 2012, STMicroelectronics N.V. and Wasion Group announced the availability of NFC-enabled post-pay power meters for deployment in the municipal grid of ChongQing, China.
  • On May 30, 2012, STMicroelectronics N.V. announced that during Annual General Meeting which was held in Amsterdam on May 30, 2012 it has approved the distribution of a cash dividend of USD 0.40 per share, to be paid in four equal quarterly installments, in June, August and December 2012 (November 29, 2012 in Europe) and February 2013 to shareholders of record in the month of each quarterly payment.
  • On May 24, 2012, Reuters reported that Bharti Airtel Limited agreed to buy a 49% stake in Qualcomm Inc's (QCOM.O) fourth-generation (4G) broadband venture in the country for $165 million.
  • On May 23, 2012, Analog Devices, Inc. announced that for third quarter of 2012, it expects revenues to grow sequentially in the range of 1% to 4% and diluted earnings plan to be in the range of $0.54-$0.58. The Company reported revenue of $675 million in second quarter of 2012.
  • On May 22, 2012, Analog Devices, Inc. announced that the Board of Directors has declared a cash dividend of $0.30 per outstanding share of common stock. The dividend will be paid on June 12, 2012 to all shareholders of record at the close of business on June 1, 2012.
  • On May 16, 2012, Reuters reported that Bharti Airtel Limited is in advanced talks to buyout the Indian partners of QUALCOMM Inc. in a fourth-generation (4G) broadband venture in the country.
  • On May 1, 2012, Broadcom Corporation announced that for second quarter of 2012, it expects net revenue to be roughly $1.9 billion to $2.0 billion. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $1.9 billion for second quarter of 2012.
  • On April 25, 2012, Cirrus Logic, Inc. announced that for the fourth quarter of 2012, it expects revenue of $110.6 million and for the first quarter of 2013, revenue is expected to range between $96-$106 million.
  • On April 23, 2012, Cirrus Logic, Inc. announced the passing Of Chairman Mike Hackworth.
  • On April 23, 2012, Imagination Technologies Group plc announced that it has signed a license agreement with Qualcomm Incorporated, for certain IP from Imagination's Ensigma UCC broadcast, communications and connectivity IP family.
  • On April 18, 2012, QUALCOMM Inc. announced that for the third quarter of 2012, it expects revenues of $4.45-$4.85 billion, non-GAAP diluted earnings per share to be $0.83-$0.89 and GAAP EPS to be $0.67-$0.73. For fiscal 2012, it expects revenues of $18.7-$19.7 billion, non-GAAP diluted earnings per share to be $3.61-$3.76 and GAAP EPS to be $3.41-$3.56. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $4.80 billion, EPS of $0.90 for third quarter of 2012; revenue of $19.4 billion and EPS of $3.77 for fiscal 2012.

Technical Overview


The stock has a market capitalization of $30.25B and is currently trading at $26.56 with a 52 week range of $24.34 - $34.24. The stock's year-to-date performance has been -8.23%. It is currently trading below 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Source: Earnings Preview: Texas Instruments