What's In Store For Texas Instruments This Quarter?

 | Jul 25, 2016 09:34AM ET

Texas Instruments (NASDAQ:TXN) Information Technology - Semiconductors | Reports July 25, After Market Closes

Key Takeaways

  • The Estimize consensus is calling for earnings per share of 74 cents on $3.21 billion in revenue, 2 cents higher than Wall Street on the bottom line and right in line on the top
  • Analog and embedded chips make up nearly 85% of Texas Instrument’s total revenue, both of which fell last quarter
  • The chipmaker is less likely to be severely impacted by declining iPhone sales due to its wide array of products
  • What are you expecting for TXN ?

The rebound in the semiconductor space comes amid a shift away from PCs to high growth markets such as IoT, wireless connectivity, and even automotive technology. Texas instruments is at the forefront of some of the progress made in wireless infrastructure and connected cars. And while they are best known for making calculators their bread and butter is in analog and embedded chips for mobile devices.

The chipmaker is less likely to be severely impacted by declining iPhone sales due to its wide array of products. Expectations are still relatively muted heading into its Q2 results with investors skeptical about the industry’s broader turnaround.

The Estimize consensus is calling for earnings per share of 74 cents on $3.21 billion in revenue, 2 cents higher than Wall Street on the bottom line and right in line on the top. Compared to the year earlier earnings are projected positive with flat sales growth.

The stock is up over 30% in the past 6 months, but don’t expect any additional jump after its report. Typically, shares remain flat for 30 days at which point it increases by 2%.