Texas Instruments Beats Consensus for First Time in 7 Years By Investing.com

Shares of Texas Instruments (NASDAQ:) surged more than 7% in after-hours trading Tuesday after the semiconductor company reported better-than-expected earnings and earnings for its first quarter of fiscal 2024.

The chipmaker reported earnings per share (EPS) of $1.20, which beat the consensus estimate of $1.07. Revenue for the quarter also beat estimates, reaching $3.66 billion compared to the consensus estimate of $3.61 billion.

Looking ahead to the second quarter of 2024, Texas Instruments expects EPS to be between $1.05 and $1.25, compared to analyst estimates of $1.16. The company expects revenue to fall between $3.65 billion and $3.95 billion, compared to market expectations of $3.77 billion.

Commenting on the report, Goldman Sachs analysts said TXN “marks the first time in seven years that it has reported quarterly revenue above street consensus,” and “suggests a cyclical correction that has had a negative impact on the broader semiconductor industry beyond the end of 2022.” It might end.”

“While there are reasons to be relatively cautious about TXN in the context of the analog/MCU space, we believe TI’s better-than-concerned outlook could reignite investor interest in an underperforming group in the broader semiconductor space. “We did it in 2023 and we did it in 2024,” they wrote.

Goldman Sachs raised its price target from $137 to $157, but maintained a sell rating amid an “unfavorable risk/reward profile.”