Shares of Texas Instruments Inc (NASDAQ: TXN) tanked in premarket trading on Thursday, after the company reported its fourth-quarter results.
The results came amid an exciting earnings season. Here are some key analyst takeaways from the release.
Cantor Fitzgerald analyst C.J. Muse maintained a Neutral rating, while reducing the price target from $180 to $170.
Mizuho Securities analyst Vijay Rakesh reiterated a Neutral rating, while slashing the price target from $170 to $164.
Truist Securities analyst William Stein reaffirmed a Hold rating, while tweaking the price target from $169 to $168.
KeyBanc analyst John Vinh maintained an Overweight rating, while raising the price target from $180 to $200.
Stifel analyst Tore Svanberg reiterated a Hold rating and price target of $160.
Check out other analyst stock ratings.
Cantor Fitzgerald: “While a miss was largely expected by the market, the magnitude was not,” Muse wrote in a note. He added that management cut their revenue guidance once again, despite five quarters of year-on-year declines, “actually accelerating to -18% Y/Y — the worst of the current downturn.”
“Mgmt attributed the decline to expectations for continued weakness in Industrial into 1Q24, combined with Automotive inventory now normalized (suggesting ongoing weakness there after a -5% decline in the Dec Q),” the analyst said.
Mizuho Securities: Although Texas Instruments reported its December quarter revenues in-line with expectations, at $4.08 billion, its March quarter guidance was lowered to $3.6 billion, Rakesh said.
“MarQ utilization down, GMs towards ~57% (lowest since 2020), BUT not cutting Capex at ~$5B/yr,” the analyst wrote. “We believe TXN could see challenges with high inventory, increasing supply/Capex/capacity and softening auto-industrial demand,” he added.
Truist Securities: “We expected TXN’s Q1 outlook to reflect the start of a recovery, but guidance disappointed on further weakness in industrial, & now in autos, so growth goes lower and likely troughs in 1Q24,” Stein wrote in a note.
“While the superficial read is negative for industrial & autos semis, the cycle dynamics remain clearly out-of-phase and not worth over-reading,” he added. Texas Instruments’ recovery has been pushed out again, but the company’s reset is…
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