Texas Instruments to Post Q1 Earnings: What's in Store for the Stock?

Core Viewpoint - Texas Instruments (TXN) is expected to report first-quarter 2025 results on April 23, with anticipated earnings per share between 94 cents and $1.16, reflecting a year-over-year decline of 11.7$1.06 per share [1][2] Financial Performance Expectations - The company forecasts revenues between $3.74 billion and$4.06 billion for the first quarter, with the Zacks Consensus Estimate at $3.91 billion, indicating a growth of 6.7% compared to the previous year's figure [2] - TXN has consistently surpassed the Zacks Consensus Estimate in the last four quarters, with an average surprise of 8.9% [2] Market Influences - The U.S.-China trade war and tariff hikes are expected to negatively impact Texas Instruments' performance, as China accounted for over 20% of its annual revenues in 2024 [3] - Softness in the industrial and automotive end markets, which contribute to 70% of annual revenues, is likely to adversely affect results [3] Cost Factors - Rising manufacturing costs due to planned capacity expansions and decreased factory loadings are anticipated to be significant headwinds for the company in the upcoming quarter [4] - The company is increasing its Lehi factory in Utah, which will incur additional costs [4] Segment Performance - A declining demand environment, primarily due to customers reducing inventory, is expected to negatively impact the Analog and Embedded Processing segments during the fourth quarter [5] Long-term Opportunities - Texas Instruments is expected to benefit from a recent grant under the U.S. government's CHIPS Act program, although the impact will be long-term and not reflected in the upcoming quarter's earnings [6]