Texas Instruments will be the first major semiconductor company to report December-quarter-earnings season after the market close Tuesday.
The chip maker sells the basic building-block chips that go into products in nearly every sector of the economy from autos and industrials to consumer electronics. Because of the broad-based nature of the company’s customers, investors consider the company to be a bellwether for the technology industry, and the economy.
The analyst consensus is for
Texas Instruments
to report fourth-quarter revenue of $4.12 billion with adjusted earnings-per-share of $1.47, according to FactSet. Analysts’ estimates for the current quarter’s revenue is $4.05 billion.
Last week, analyst Timothy Arcuri upgraded Texas Instruments stock to Buy from Neutral, and increased his target for the share price to $195 from $170.
“Expectations around lead times have finally bottomed, pricing remains firm,” the analyst wrote, citing a survey of chip customers and distributors his firm recently conducted. About half of respondents now expect lead times—how long it takes to receive an order after placing it—to rise over the next six months, versus about 35% in the previous survey. That is an early sign that orders will improve this year, according to Arcuri.
Texas Instruments shares stock is up 1% over the past 12 months, compared with the 56% rise for the
iShares Semiconductor
exchange-traded fund.
Write to Tae Kim at [email protected]
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