Texas Instruments will report results on Wednesday afternoon, with txn stock already up 24.3% over the last month. The analog chip maker heads into the update after a stretch in which it has repeatedly missed Wall Street's revenue estimates over the last two years.
Last quarter, Texas Instruments reported revenue of $4.42 billion, up 10.4% year on year, but it missed analysts' EPS estimates and slightly missed revenue estimates. This time, the market expects revenue to grow 11.3% from a year earlier, about in line with the 11.1% pace the company posted in the same quarter last year.
The stock's move has come alongside a wider run in semiconductors, where shares have risen 27.2% on average over the last month. Texas Instruments now trades at $234.50, above the average analyst price target of $227.33, a gap that leaves little room for another cautious report.
Context from the rest of the chip sector is mixed. Micron posted year-on-year revenue growth of 196% and beat analysts' expectations by 20.1%, but the stock fell 3.8% after the results. Penguin Solutions reported a 6.2% revenue decline, topped estimates by 0.8% and then rose 13.4%.
Analysts covering Texas Instruments have generally reconfirmed their estimates over the last 30 days, which suggests they are waiting for Wednesday's numbers rather than changing their view ahead of them. The question now is whether the company can match the industry rally with a report that does more than just meet expectations.
