), or "TI," is set to report second-quarter 2014 results on Jul 21.
Last quarter, the company posted a 7.3% positive surprise. Let's
see how things are shaping up for this announcement.
Factors this Past Quarter
TI's first-quarter earnings surpassed the Zacks Consensus
Estimate driven by an improving mix of business and efficient cost
control. However, revenues were down 1.5% sequentially but up 3.4%
year over year. Distributor resales jumped 10% from last year.
TI's gross margin of 53.9% was down 29 basis points (bps)
sequentially but up 625 bps from the year-ago quarter. Lower
volumes led to the sequential decline.
For the second quarter of 2014, TI expects revenues within
$3.14-$3.40 billion. Earnings per share are expected in the range
of 55-63 cents, the mid-point of 59 cents being in line with the
Zacks Consensus Estimate.
Our proven model does not conclusively show that Texas
Instruments will beat earnings this quarter. That is because a
stock needs to have both a positive
and a Zacks Rank #1, 2 or 3 for this to happen. That is not the
case here as you will see below.
Both the Most Accurate estimate and the Zacks Consensus Estimate
stand at 59 cents. Hence, the difference is 0.00%.
Texas Instrument has a Zacks Rank #2 (Buy) which when combined with
a 0.00% ESP makes surprise prediction difficult.
We caution against stocks with Zacks Rank #4 and 5 (Sell-rated
stocks) going into the earnings announcement, especially when the
company is seeing negative estimate revisions momentum.
Other Stocks to Consider
You could consider other stocks with a positive Earnings ESP and
a Zacks Rank #1, 2 or 3 such as:
), with an Earnings ESP of +2.08% and a Zacks Rank #1 (Strong
), with an Earnings ESP of +3.13% and a Zacks Rank #1.
), with an Earnings ESP of +3.08% and a Zacks Rank #1.
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