TXN Earnings Prediction
The chart below shows how TXN performed 10 days before and after its earnings report, based on data from the past quarters. Typically, TXN sees a +0.63% change in stock price 10 days leading up to the earnings, and a -1.06% change 10 days following the report. On the earnings day itself, the stock moves by -0.42%. This data can give you a slight idea of what to expect for the next quarter's release.
TXN Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
4.01B
-1.72%
-3.47%
Gross Margin
57.75%
-3.15%
-3.10%
Operating Margin
34.36%
-8.62%
-8.23%
Net Margin
30.07%
-10.59%
-8.35%
EPS
1.30
-12.75%
-11.56%
No Data Available
TXN Earnings Analysis
Texas Instruments Inc Corporation (TXN.O) Earnings Conference Call
Positive
Q4 Revenue Recovery: Revenue for Q4 2024 was $4 billion, with Analog revenue growing 2% year over year after 8 quarters of decline.
Strong Profitability Performance: Gross profit margin for Q4 was 58%, resulting in a gross profit of $2.3 billion, demonstrating strong profitability despite a slight sequential decrease.
Strong Cash Flow Generation: Cash flow from operations was $2 billion in Q4, contributing to a total of $6.3 billion for the year, indicating robust cash generation capabilities.
Shareholder Value Return: Texas Instruments returned $5.7 billion to shareholders over the past 12 months through dividends and share repurchases, reflecting strong capital management and commitment to shareholder value.
Dividend Increase Commitment: The company increased its dividend per share by 5% in Q4, marking the 21st consecutive year of dividend increases, showcasing a strong commitment to returning capital to shareholders.
Negative
Revenue Decline Analysis: Revenue decreased by 3% sequentially and 2% year-over-year, totaling $4 billion, indicating a continued decline in overall performance.
Embedded Processing Decline: Embedded Processing revenue declined by 18%, highlighting significant weakness in this segment compared to previous quarters.
Gross Profit Margin Decline: Gross profit margin decreased by 190 basis points to 58%, primarily due to lower revenue and higher depreciation costs, reflecting operational challenges.
Declining Operating Profit: Operating profit fell by 10% year-over-year to $1.4 billion, representing only 34% of revenue, indicating reduced profitability amid declining sales.
Inventory Management Challenges: Inventory levels increased by $231 million to $4.5 billion, with days of inventory rising to 241, suggesting potential overstock issues and inefficiencies in inventory management.
TXN FAQs
How does TXN typically perform around its earnings report dates?
Is Earnings call transcript: Texas Instruments beats Q4 2024 estimates, stock dips positive or negative?
How can historical earnings data help predict future stock performance?
TXN Earning Call Sentiment
Earnings call transcript: Texas Instruments beats Q4 2024 estimates, stock dips
TXN.O
-0.1%Positive
The earnings call reveals several concerning factors: a decrease in revenue and gross margins, challenges in supply chain and competitive pressures, and increased inventory levels. Despite a 5% dividend increase, the market strategy faces economic headwinds in key regions. The Q&A highlighted uncertainties in earnings outlook and margins, with management providing limited details on CHIPS Act impacts. These factors suggest a negative sentiment, likely leading to a stock price decline of 2% to 8% over the next two weeks.