Texas Instruments Shares Dip After Q2 Earnings Report

Texas Instruments Trading Overview
Texas Instruments Incorporated (NASDAQ: TXN) shares have recently experienced a decline, particularly on a recent Wednesday. This drop followed the release of the company’s second quarter earnings report paired with guidance for the third quarter.
Second Quarter Earnings Highlights
The earnings report revealed that Texas Instruments achieved earnings per share of $1.41, which surpassed the analyst consensus estimate of $1.33. Furthermore, the company reported sales of $4.44 billion, outpacing the expected $4.32 billion. This impressive sales figure marked a substantial year-over-year growth of 16%.
Third Quarter Outlook
Looking ahead, Texas Instruments projects earnings per share between $1.36 and $1.60. This forecast is slightly below the consensus estimate of $1.48. Additionally, the company anticipates sales ranging from $4.45 billion to $4.80 billion, with the market expecting around $4.53 billion in sales.
Analyst Ratings and Price Targets
In the aftermath of the earnings report, market analysts responded by adjusting their price targets for Texas Instruments. Notably:
- JP Morgan analyst Harlan Sur raised the price target from $195 to $225, maintaining an Overweight rating.
- Truist Securities' William Stein increased the price target from $171 to $196, retaining a Hold rating.
- Wells Fargo's Joe Quatrochi lowered the price target from $215 to $195, keeping an Equal-Weight rating.
- Christopher Rolland from Susquehanna reduced the target from $250 to $240 while keeping a Positive rating.
- Lastly, Tristan Gerra from Baird revised the target upwards from $175 to $220, holding an Outperform rating.
Current Market Performance
At the time of this write-up, Texas Instruments shares are trading approximately 11.7% lower, priced at $189.71. This reflects mild investor caution in light of the company's recent earnings report and outlook.
Conclusion
The earnings results from Texas Instruments and subsequent guidance signal a mixed outlook as the company navigates market expectations and analyst reviews. The adjustment in price targets by various analysts indicates differing perspectives on the stock’s future trajectory. Investors will be keen to observe how these factors play out in the coming weeks.
Frequently Asked Questions
What is Texas Instruments Incorporated known for?
Texas Instruments designs and manufactures semiconductors and various integrated circuits, which are essential to a wide range of electronics.
Why did Texas Instruments' stock decline?
The decline followed the release of second quarter earnings and guidance for the third quarter, which did not fully meet market expectations.
What were Texas Instruments' earnings per share for Q2?
The company's earnings per share for the second quarter were reported at $1.41, exceeding analysts' expectations.
What is the forecast for Texas Instruments' Q3 earnings?
The forecast for Q3 indicates earnings per share between $1.36 to $1.60, which is below the analyst's consensus of $1.48.
How have analysts adjusted their price targets for Texas Instruments?
Analysts have made various adjustments, with some raising and others lowering price targets based on the latest earnings report.
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