What’s in the cards for Texas Instruments (TXN) fourth quarter earnings? – January 20, 2022

Texas Instruments Incorporated (TXN Free Report) is expected to release its fourth quarter 2021 results on January 25.

For the fourth quarter of 2021, the company expects revenue of between $4.22 billion and $4.58 billion. Zacks’ consensus estimate for the same is pegged at $4.44 billion, suggesting an 8.9% growth from the figure reported a year ago.

The company expects earnings of $1.83 to $2.07 per share for the fourth quarter.

The consensus mark for the same is set at $1.95 per share, indicating an improvement of 8.3% over the figure reported the previous year. The figure has remained unchanged for the past 30 days.

The company has exceeded Zacks’ consensus estimate for the past four quarters, generating a surprise profit of 16.8% on average.

Factors to consider

The strength of Texas Instruments’ product portfolio and expanding manufacturing capabilities should be reflected in its upcoming quarterly results.

Strengthening momentum in the analog and embedded processing segments likely contributed to Texas Instrument’s performance in the fourth quarter.

The company’s robust signal chain and power product lines are expected to have continued to contribute to analog segment revenue growth in the quarter under discussion.

The upward trend in personal electronics, due to the growing demand for electronic gadgets for remote work, learning and entertainment amid the ongoing pandemic, is likely to have led to a growth in the company’s revenue generated from the personal electronics market in the forthcoming quarter.

The continued rebound in the auto industry should have been a tailwind in the fourth quarter.

Solid momentum across key sectors should have continued to support the company’s performance in the industrial market during the quarter under review.

The company’s significant investments in growth paths and competitive advantages should have been positive.

Texas Instrument’s continued returns to shareholders should have acted as tailwinds. Its deepening aimed at accelerating the generation of free cash flow was probably another positive element. The impacts of all of these factors should be reflected in the company’s fourth quarter results.

However, uncertainties related to the coronavirus pandemic should have weighed on TXN during the quarter under review. In addition, the smoothness in space of the communication equipment should have been of concern.

What our model says

Our proven model does not conclusively predict an earnings beatdown for Texas Instruments this time around. The combination of a positive Earnings ESP and a Zacks rank of #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of beating Earnings. You can discover the best stocks to buy or sell before they’re flagged with our earnings ESP filter.

Texas Instruments currently has a Zacks Rank #3 and an Earnings ESP of 0.00%.

Actions to consider

Here are a few companies that, according to our model, have the right combination of elements to post a pace of earnings in their soon-to-be-released quarterly results.

Endava (DAVA Free Report) has an Earnings ESP of +1.70% and a Zacks Rank of 2 at present. You can see the full list of today’s Zacks #1 Rank stocks here.

Endava is expected to report the results for the second quarter of fiscal 2022 on February 16. Zacks’ consensus estimate for DAVA’s earnings is pegged at 59 cents per share, suggesting a 55.3% increase over the figure reported the previous year.

Alphabet (GOOGL Free Report) has an ESP on earnings of +10.08% and a Zacks Rank #2 at present.

Alphabet is expected to report fourth quarter 2021 results on February 1. Zacks’ consensus estimate for GOOGL’s earnings is pegged at $26.85 per share, suggesting a 20.4% increase over the figure reported the previous year.

Monolithic power systems (MPWR Free Report) has an ESP on earnings of +2.83% and a Zacks rank #2 at present.

Monolithic Power Systems is expected to report fourth quarter 2021 results on February 3. Zacks’ consensus estimate for MPWR’s earnings is pegged at $1.87 per share, suggesting a 42.8% increase over the prior year’s figure.

About Anne Wurtsbach

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