
Texas Instruments Incorporated (NASDAQ:TXN) shares are trading lower on Wednesday after the company issued fourth-quarter earnings and revenue guidance below analyst estimates.
- TXN is feeling the pressure from bearish momentum. View the charts here.
What Happened: Texas Instruments reported third-quarter financial results after the market close on Tuesday that sent shares lower. The company beat revenue estimates, reporting $4.74 billion for the quarter, but missed earnings estimates. Guidance for the fourth quarter particularly weighed on shares.
Texas Instruments forecasted fourth-quarter earnings per share between $1.13 and $1.39, versus the analyst consensus of $1.41. The company also said it expects revenue in the range of $4.22 billion to $4.58 billion, versus estimates of $4.52 billion.
CEO Haviv Ilan emphasized the company's solid financial footing, pointing to $6.9 billion in operating cash flow over the past 12 months. Free cash flow hit $2.4 billion during the same period. Over the last year, Texas Instruments set aside $3.9 billion for research, development and operations. It also spent $4.8 billion on capital projects and returned $6.6 billion to shareholders through dividends and buybacks.
Several analysts trimmed their price targets for Texas Instruments after the company’s latest guidance. Goldman Sachs dropped its target from $230 to $200, but kept a Buy rating. JPMorgan lowered its target to $210 from $225, keeping an Overweight rating. TD Cowen also cut its target to $200 from $210, maintaining a Buy.
Rosenblatt analyst Kevin Cassidy reduced the price target to $200 from $245 while keeping a Buy rating. Wells Fargo dropped its target to $170 from $195 with an Equal-Weight rating and Cantor Fitzgerald lowered its target to $170 from $200 with a Neutral rating.
TXN Price Action: Texas Instruments shares are trading down 8.05% at $166.29 at the time of publication on Wednesday, according to Benzinga Pro. The stock hit a high of $173.08 and dipped to a low of $163.04 during the Wednesday’s session, marking a wide intraday range. Texas Instruments stock is 20.3% above its 52-week low.
Read Next:
- Netflix, Intuitive Surgical, Beyond Meat, Texas Instruments, Warner Bros: Why These 5 Stocks Are On Investors’ Radars Today
Image: Michelmond/Shutterstock