Texas Instruments’ Q3 Revenues Miss Estimates; Shares Fall 3.6%

Shares of global semiconductor company Texas Instruments Inc. (TXN) lost 3.6% in the extended trading session on Tuesday after its third-quarter revenues fell just short of the Street’s estimate.

Headquartered in Dallas, Texas Instruments designs and produces semiconductors and different types of integrated circuits. The company also develops analog chips and embedded processors.

Earnings per share (EPS) jumped 43% year-over-year to $2.07, slightly above analysts’ expectations of $2.05.

Driven by strong demand in industrial, automotive and personal electronics, revenues grew 22% to $4.64 billion but missed the Street’s estimate of $4.66 billion.

Analog revenue grew 24% year-over-year to $3.5 billion; Embedded Processing revenue rose 13% to $738 million; and Other revenue climbed 19% to $357 million. (See Insiders’ Hot Stocks on TipRanks)

The Chairman, President and CEO of Texas Instruments, Rich Templeton, said, “Texas Instruments’ fourth-quarter outlook is for revenue in the range of $4.22 billion to $4.58 billion and EPS between $1.83 and $2.07. We continue to expect our 2021 annual operating tax rate to be about 14%.”

Following the release of the third-quarter financial results, Rosenblatt Securities analyst Hans Mosesmann reiterated a Buy rating on the stock with a price target of $230 (16.8% upside potential).

The analyst expects the company to report earnings of $2.08 per share in the fourth quarter.

Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The average Texas Instruments price target of $227 implies 15.2% upside potential. Shares have gained nearly 34% over the past year.

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