Texas Instruments Shares Surge 6% Following Strong Q1 Results

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.