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Texas Instruments Second Quarter Earnings Preview
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Analysts are expecting a drop in profit for Texas Instruments (Nasdaq:TXN) when it reports its results for the second quarter on Monday, July 23, 2012. The company reported profit of 56 cents a year ago, but the current consensus estimate anticipates earnings per share of 39 cents.
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: How To Decode A Company's Earnings Reports
What to Expect: Analysts are projecting earnings of 39 cents per share for Texas Instruments, 30.4% less than a year ago, when the company reported earnings of 56 cents per share.
In the last 30 days, the consensus estimate has risen from 38 cents, but it is the same as it was three months ago. Analysts are expecting earnings of $1.75 per share for the fiscal year.
Revenue for the quarter is expected to be $3.35 billion, short of last year's reported figure of $3.46 billion by 3.1%. The anticipated revenue for the fiscal year is $13.57 billion.
Company Performance: Revenue has been falling for four quarters now. It decreased 8% to $3.12 billion in the first quarter. Prior to that, the figure fell 3% in the fourth quarter of the last fiscal year, 7.3% in the third quarter of the last fiscal year and 1.1% in the second quarter of the last fiscal year.
Despite being profitable for the last eight quarters, the company has seen net income slide backward over the past four quarters by an average of 42.8% year-over-year.
The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio
A business' earnings are the main determinant of its share price because earnings and the circumstances relating to them can indicate whether the business will be profitable and successful in the long run. SEE: How To Decode A Company's Earnings Reports
What to Expect: Analysts are projecting earnings of 39 cents per share for Texas Instruments, 30.4% less than a year ago, when the company reported earnings of 56 cents per share.
In the last 30 days, the consensus estimate has risen from 38 cents, but it is the same as it was three months ago. Analysts are expecting earnings of $1.75 per share for the fiscal year.
Revenue for the quarter is expected to be $3.35 billion, short of last year's reported figure of $3.46 billion by 3.1%. The anticipated revenue for the fiscal year is $13.57 billion.
Company Performance: Revenue has been falling for four quarters now. It decreased 8% to $3.12 billion in the first quarter. Prior to that, the figure fell 3% in the fourth quarter of the last fiscal year, 7.3% in the third quarter of the last fiscal year and 1.1% in the second quarter of the last fiscal year.
Despite being profitable for the last eight quarters, the company has seen net income slide backward over the past four quarters by an average of 42.8% year-over-year.
The price/earnings ratio is calculated by taking a stock price and dividing it by the earnings-per-share (EPS). High P/E stocks could be "growth" stocks, while low PE stocks may be "value" stocks. SEE: Understanding The P/E Ratio
by
Investopedia Staff
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