Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be reporting earnings tomorrow afternoon. Here’s what to look for.

Texas Instruments beat analysts’ revenue expectations by 3.3% last quarter, reporting revenues of $4.01 billion, down 1.7% year on year. It was a very strong quarter for the company, with an impressive beat of analysts’ EPS estimates and a solid beat of analysts’ adjusted operating income estimates.

Is Texas Instruments a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Texas Instruments’s revenue to grow 6.8% year on year to $3.91 billion, a reversal from the 16.4% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.10 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Texas Instruments has missed Wall Street’s revenue estimates three times over the last two years.

Looking at Texas Instruments’s peers in the semiconductors segment, only Micron has reported results so far. It beat analysts’ revenue estimates by 1.9%, delivering year-on-year sales growth of 38.3%. The stock was down 7.9% on the results.

Read our full analysis of Micron’s earnings results here.

Stocks generally had a good 2024. The Fed fought high inflation and won without sending the economy into a recession, otherwise lovingly known as a soft landing. The U.S. Central Bank is now cutting rates. That, plus the election of Donald Trump in November 2024, sent markets even higher, but semiconductors stocks have been not followed the broader market, with share prices down 22.6% on average over the last month. Texas Instruments is down 22.1% during the same time and is heading into earnings with an average analyst price target of $197.18 (compared to the current share price of $143.48).

When a company has more cash than it knows what to do with, buying back its own shares can make a lot of sense–as long as the price is right. Luckily, we’ve found one, a low-priced stock that is gushing free cash flow AND buying back shares. Click here to claim your Special Free Report on a fallen angel growth story that is already recovering from a setback.