An equation is displayed on Texas Instruments Inc. TI-34 MultiView scientific calculator in … [+] Tiskilwa, Illinois, U.S., on Sunday, April 17, 2011. Texas Instruments Inc. is scheduled to release a quarterly earnings report today following the close of U.S. financial markets. Photographer: Daniel Acker/Bloomberg
(C) 2011 Bloomberg Finance LP

Texas Instruments Inc. is scheduled to report earnings after Wednesday’s close. The stock hit a record high of $197.58/share in 2021 and is currently trading near $188/share. The stock is prone to big moves after reporting earnings and can easily gap up if the numbers are strong. Conversely, if the numbers disappoint, the stock can easily gap down. To help you prepare, here is what the Street is expecting:

Earnings Preview:

The company is expected to report a gain of $1.82/share on $4.34 billion in revenue. Meanwhile, the so-called Whisper number is a gain of $1.98/share. The Whisper number is the Street’s unofficial view on earnings.

Charts Courtesy of MarketSmith Incorporated
Charts Courtesy of MarketSmith Incorporated

A Closer Look At The Fundamentals:

The company has managed to grow its earnings and sales by double digits in each of the past two quarters. Large institutions pay special attention whenever they see a well established large cap stock, like Texas Instruments, manage to grow its earnings by over 50% in two consecutive quarters and grow its revenue by over 20%. That type of growth is very impressive and it tends to bode well for shareholders in the long-run.


A Closer Look At The Technicals:

Technically, the stock just hit a record high and is pulling back to digest that move. ?Investors who look at charts will like the pattern that is forming as it resembles a bullish cup-with-handle type base. The bears may argue that the handle is not proper but the stock is trading just below its record high and near its 50 DMA line which are both very bullish ahead of earnings.

Pay Attention To How The Stock Reacts To The News:

From where I sit, the most important trait I look for during earnings season is how the market and a specific company reacts to the news. Remember, always keep your losses small and never argue with the tape.

Read More