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Apr 24, 2024 3:54 PM - Davit Kirakosyan
Shares of Texas Instruments (NASDAQ:TXN) jumped more than 6% intra-day today following the semiconductor company's announcement of fiscal Q1/24 results that surpassed expectations. Texas Instruments disclosed earnings per share (EPS) of $1.20, exceeding the consensus forecasts of $1.07. Additionally, the company's revenue of $3.66 billion for the quarter also topped the anticipated $3.61 billion.
For the upcoming second quarter of 2024, Texas Instruments set its EPS guidance in the range of $1.05 to $1.25, compared to the analyst consensus of $1.16. The company also anticipates revenues to be between $3.65 billion and $3.95 billion, compared to the market expectation of $3.77 billion.
Analysts at Goldman Sachs remarked on the significance of this earnings report, noting it as the first instance in seven years where Texas Instruments has projected revenues for the next quarter above street consensus. This development suggests that the cyclical downturn that has affected the broader semiconductor industry since late 2022 might be nearing its end.
Despite the positive outlook, Goldman Sachs adjusted their target price for Texas Instruments from $137 to $157, continuing to maintain a Sell rating due to what they consider an unfavorable risk/reward profile. The analysts also suggested that while there are reasons for caution regarding Texas Instruments relative to the Analog/MCU sector, the company’s stronger-than-anticipated outlook could potentially revive investor interest in a segment that lagged behind the broader semiconductor market in 2023 and continues to do so in 2024.
Sep 11, 2023 1:38 PM - Rajnish Katharotiya
Price to Earnings is one of the key metrics use to value companies using multiples. The P/E ratio and other multiples are relative valuation metrics and they cannot be looked at in isolation. One of the problems with the P/E metric is the fact that if we are in the peak of a business cycle, earni...
Sep 11, 2023 1:49 PM - Rajnish Katharotiya
Price-to-Earnings ratio is a relative valuation tool. It is used by investors to find great companies at low prices. In this post, we will build a Python script to calculate Price Earnings Ratio for comparable companies. Photo by Skitterphoto on Pexels Price Earnings Ratio and Comparable Compa...
Oct 17, 2023 3:09 PM - Davit Kirakosyan
Shares of VMware (NYSE:VMW) witnessed a sharp drop of 12% intra-day today due to rising concerns about China's review of the company's significant sale deal to Broadcom. Consequently, Broadcom's shares also saw a dip of around 4%. Even though there aren’t any apparent problems with the proposed solu...