BUZZ-PREVIEW: Texas Instruments rallies ahead of earnings

Reuters
04-24
BUZZ-PREVIEW: Texas Instruments rallies ahead of earnings

** Texas Instruments TXN.O shares gain 5.3% ahead of qtrly results after the bell, as investors focus on inventory challenges in automotive and industrial markets

** On January 23, TXN gave a first-qtr profit forecast below analysts' estimates as the analog chipmaker grapples with an inventory buildup in its key markets

** Analysts expect qtrly rev up 6.8% to $3.91 bln, with adjusted EPS seen at $1.07 vs $1.20 yr-ago, per LSEG

** TXN stock recently at 26 times expected earnings, suggesting it may be fairly valued compared to its avg forward PE of 25 over past five years, per LSEG data

** The co's stock has slipped about 18% year to date, compared to a 13% fall in Nasdaq .IXIC, indicating underperformance relative to the index

** TXN stock is about 30% below its 52-week intraday high of $220.38 reached on Nov. 08, 2024, reflecting significant decline from peak levels

** In past 30 days, one out of 33 analysts raised EPS estimates for qtr, while one revised downwards, showing mixed sentiment among analysts

(Reporting by Noel Randewich)

((noel.randewich@thomsonreuters.com))

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