Texas Instruments Expected To Post Decline In EPS, Revenue As Wells Fargo Analysts Point To Demand Slowdown: Retail Stays Extremely Bullish

Shares of Texas Instruments Inc. (TXN) gained around 1% in mid-day trade on Thursday ahead of the company’s fourth-quarter earnings scheduled during the after-market hours.

However, analysts at Wells Fargo pointed out that data suggests there could be a slowdown in demand, according to a report by TheFly.

Wells Fargo’s Joe Quatrochi lowered Texas Instruments’ price target to $200 from $208 while maintaining an ‘Equal Weight’ rating on the stock.

The analyst notes that TXN’s fourth-quarter results and guidance for the first quarter of fiscal year 2025 may not be the potential clearing event that the stock needs to rally.

The brokerage also noted that the CHIPS Act grant is expected to benefit Texas Instruments’ depreciation expenses by $30 million to $40 million in 2024 and $110 million to $120 million in 2025.

According to Stocktwits data, TXN is expected to post earnings per share (EPS) of $1.21 in the fourth quarter, down from $1.47 during the same period last year.

The company is also expected to post a year-on-year decline in revenue to $3.88 billion from $4.12 billion during the same period in the preceding year.

Retail sentiment on Stocktwits remained ‘extremely bullish’ (90/100) as the market awaits TXN’s results. Message volume surged to ‘extremely high’ (90/100) from ‘high’ levels a day ago.

TXN sentiment and message volume January 23, 2025, as of 12:30 pm ET | Source: Stocktwits

Despite the volatile movements over the past year, one user thinks TXN stock price could be back to its 52-week high post-earnings.

However, not everyone is sold on the bullish outlook, with one user wondering how TXN will post a good quarter when its peers have reported muted numbers.

Texas Instruments’ share price has barely moved over the past six months, gaining just 0.15%. Over the past year, though, it has gained nearly 14%.

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