Texas Instruments beats analysts’ estimates for earnings and revenue in the fourth quarter

Texas Instruments beats analysts’ estimates for earnings and revenue in the fourth quarter
Written by:
Michael Harris
24th January, 14:31
Updated: 11th March, 09:06
  • Texas Instruments beats analysts’ estimates for earnings and revenue in the fourth quarter.
  • The company cites rising demand for sophisticated chips for upbeat performance.
  • Texas Instruments’ quarterly revenue dropped in the past five quarters in a row.
  • The stock gained around 36% in the stock market in 2019.

The Dallas-based technology company, Texas Instruments, announced its revenue forecast for the first quarter on Wednesday that was reported to be higher than the market expectations. The company cited rising demand for microchips for the upbeat forecast. It also suggested that the current data hints at the slowdown that has weighed on the semiconductor industry for long, finally coming to an end.

Texas Instruments was the first big chip manufacturer that reported earnings for the fourth quarter. As per the report, the company benefitted from the worldwide demand for sophisticated chips that are widely used in autonomous vehicles and are now expected to be an imperative component of the global 5G network.

Texas Instruments Had Seen A Drop In Revenue In The Past 5 Quarters In A Row

The upbeat performance in the fourth quarter was good news for Texas Instruments since it posted a drop in revenue in the past 5 quarters in a row.

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Stifel analyst Tore Svanberg commented on the company’s performance results as:

“This is quite typical as a cyclical downturn in the semiconductor industry normally lasts between 3-8 quarters, depending on how severe the macro decline is.”

Texas Instruments is known for its wide range of products in the chip industry. The company commented on Wednesday that it anticipates $3.12 to $3.38 billion in revenue in Q1. According to Refinitiv, analysts are expecting $3.21 billion in revenue for the company in the first quarter.

In the fourth quarter, Texas Instruments recorded $1.12 of earnings per share (excluding items). Wall Street expectation, on the other hand, was capped at $1.02. On quarterly revenue’s font, the company posted $3.35 billion in Q4 that was reported as 10% lower. The revenue, however, was above the analysts’ forecast of $3.22 billion. The fourth quarter ended on December 31st for Texas Instruments.

Performance In The Stock Market

Texas Instruments is performing modestly upbeat in the stock market in 2020 so far. The stock opened the year at around $129.50. With a gain of around 3% so far, the stock is currently exchanging hands at $134.29. The performance for the American technology company in 2019, however, was reported very strong with the stock having gained around 36% in the last year. Texas Instruments surged from around $95 per share at the start of 2019 to a high of $125 per share towards the end of the year. The current $134.29 also marks a record high for the company in the stock market.

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