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Texas Instruments Incorporated (TXN - Free Report) is scheduled to report second-quarter 2023 results on July 25.

For the second-quarter of 2023, Texas Instruments expects revenues between $4.17 billion and $4.53 billion. The Zacks Consensus Estimate is pegged at $4.36 billion, suggesting a decline of 16.4% from the year-ago quarter’s reported figure.

Management expects earnings of $1.62-$1.88 per share for the quarter under review. The consensus mark is pegged at $1.76 per share, indicating a fall of 28.2% from the prior-year quarter’s reported figure. The estimate has remained unchanged over the past 30 days.

TXN’s earnings surpassed the Zacks Consensus Estimate in all the trailing four quarters, delivering an earnings surprise of 8.9%, on average.
 

Texas Instruments Incorporated Price and EPS Surprise

Texas Instruments Incorporated price-eps-surprise | Texas Instruments Incorporated Quote
 

Factors to Consider

Texas Instruments' product portfolio strength and expanding manufacturing capabilities are expected to get reflected in its upcoming quarterly results.

The company’s strong investments in growth avenues and competitive advantages are expected to have been positive.

Texas Instruments' continuous returns to shareholders are anticipated to have acted as tailwinds. Its deepening focus on accelerating free cash flow generation is likely to have been another positive. The impacts of all these factors are expected to be reflected in the company’s second-quarter results.

However, widespread weakness in the personal electronics, communication equipment, and enterprise systems markets might have been a major headwind.

A weakening demand environment, primarily due to inventory reductions by customers, is expected to have impacted the performance of both Analog and Embedded Processing segments during the quarter to be reported.

The Zacks Consensus Estimate for Analog revenues is pegged at $3.27 billion, reflecting a decline of 18.2% from the year-ago reported figure.

The consensus mark for Embedded Processing revenues is $815 million, indicating a fall of 0.7% from the reported figure in the prior-year quarter.

Supply-chain constraints, geopolitical tensions, and rising inflation are expected to have weighed on TXN in the quarter under review.
 

What Our Model Says

Our proven model does not conclusively predict an earnings beat for Texas Instruments this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as elaborated below.

Texas Instruments currently has an Earnings ESP of 0.00% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

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