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Can Texas Instruments Beat These Numbers?

By Seth Jayson – Updated Apr 10, 2017 at 1:50PM

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Checking expectations

Texas Instruments (Nasdaq: TXN) is expected to report Q1 earnings on April 22. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Texas Instruments's revenues will wane -8.6% and EPS will drop 0.0%.

The average estimate for revenue is $2.85 billion. On the bottom line, the average EPS estimate is $0.32.

Revenue details
Last quarter, Texas Instruments chalked up revenue of $2.98 billion. GAAP reported sales were 13% lower than the prior-year quarter's $3.42 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.36. GAAP EPS of $0.23 for Q4 were 8.0% lower than the prior-year quarter's $0.25 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 48.5%, 20 basis points better than the prior-year quarter. Operating margin was 14.9%, 660 basis points worse than the prior-year quarter. Net margin was 8.9%, 20 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $12.17 billion. The average EPS estimate is $1.75.

Investor sentiment
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,538 members out of 1,666 rating the stock outperform, and 128 members rating it underperform. Among 388 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 368 give Texas Instruments a green thumbs-up, and 20 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Texas Instruments is hold, with an average price target of $29.46.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

Texas Instruments Stock Quote
Texas Instruments
$174.34 (-1.72%) $-3.05

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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