Texas Instruments, the leading semiconductor company, will kick off the December-quarter earnings season with its highly anticipated report after the market closes on Tuesday. As a provider of essential building-block chips used in a wide range of industries, including automotive, industrial, and consumer electronics, Texas Instruments is often seen as a bellwether for both the technology sector and the overall economy.
According to FactSet, analysts expect Texas Instruments to report fourth-quarter revenue of $4.12 billion with adjusted earnings per share of $1.47. This follows estimates of $4.05 billion in revenue for the current quarter. The positive outlook for the company has been reinforced by Timothy Arcuri, an analyst who recently upgraded Texas Instruments stock to Buy from Neutral. Arcuri raised his target share price to $195 from $170, citing strong indicators in a survey conducted by his firm among chip customers and distributors. The survey revealed that approximately half of respondents anticipate an increase in lead times (the time between placing an order and receiving it) over the next six months, signaling a potential improvement in orders throughout the year.
Although Texas Instruments shares have only seen a 1% increase in the past 12 months, they still outperform the 56% rise seen in the iShares Semiconductor exchange-traded fund. With its vital role in various sectors and a positive growth outlook, Texas Instruments is poised to make a significant impact on the technology industry and the wider market.
