TXN
A tidy beat, then a bigger flex
Texas Instruments came out swinging in Q1: revenue hit $4.83 billion and EPS came in at $1.68, both ahead of Street estimates. In the very next breath, the chipmaker also told investors to expect Q2 revenue of $5.0 billion to $5.4 billion and EPS of $1.77 to $2.05, which is basically the company saying, “Yes, we’d like to be taken seriously.”
Why investors are paying attention
This isn’t just a one-quarter pop. Management highlighted $7.8 billion in trailing-12-month cash flow from operations and pointed to the strength of its product mix and 300mm production. Translation: the business is still printing cash, and its manufacturing footprint is doing some of the heavy lifting.
The Street did its thing
Once the numbers landed, analysts scrambled to adjust their models:
- BofA Securities went from Neutral to Buy and lifted its target to $320
- Goldman Sachs kept a Sell rating, but nudged its target to $200
- Baird stuck with Outperform and raised its target to $300
- Rosenblatt kept Buy and hiked its target to $330
- Barclays upgraded to Equal-Weight and moved its target to $250
Big picture
TXN’s premarket jump of 9.9% says investors liked the combo meal: beat, raise, and no obvious panic about demand. For chip investors, that’s usually enough to turn a sleepy name into the morning’s main character.