TXN Shares Soar 8% After Hours: What’s Driving Investor Optimism Despite Q4 Earnings Miss?

• The company also expects Q1 revenue in the range of $4.32 billion to $4.68 billion, compared to an analyst estimate of $4.43 billion.
• Both Q4 revenue and earnings per share missed analyst expectations. 
• Host of Mad Money on CNBC Jim Cramer cheered the earnings in a post on X.

Shares of Texas Instruments Incorporated (TXN) rose 8% after hours on Tuesday after the company issued first quarter earnings outlook above Wall Street expectations.

The semiconductor company now expects Q1 earning per share in the range of $1.22-$1.48, above an analyst estimate of $1.25 at the midpoint, according to data from Fiscal AI.

The company also expects revenue in the range of $4.32 billion to $4.68 billion, compared to an analyst estimate of $4.43 billion.

Q4 Earnings Trail Expectations

Fourth quarter earnings, however, came in at $1.27, below an analyst estimate of $1.29.  

Revenue for the period came in at $4.42 billion, marking a growth of 10% year-on-year but also below an analyst estimate of $4.45 billion.

Texas Instruments designs, manufactures and sells analog and embedded processing chips for markets such as industrial, automotive, personal electronics, enterprise systems and communications equipment.

"Over the past 12 months we invested $3.9 billion in R&D (research and development) and SG&A (selling, general and administrative costs), invested $4.6 billion in capital expenditures and returned $6.5 billion to owners,” CEO and President Haviv Ilan said. The return includes dividend payouts as well as stock repurchases.

Host of Mad Money on CNBC Jim Cramer on Tuesday cheered the earning report and wrote on X, “Texas Instruments delivered! Lower inventory, data center breakthroughs. Huge.”

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around TXN jumped from ‘neutral’ to ‘extremely bullish’ territory over the past 24 hours while message volume rose from ‘high’ to ‘extremely high’ levels.

A Stocktwits user said that it would be “painful for the shorts” once the market opens on Wednesday.

Another user said that they are going long on the stock.

TXN stock has gained 5% over the past 12 months. 

Also See: Starbucks Allows CEO To Use Jet For Personal Purposes Citing Security Concerns

For updates and corrections, email newsroom[at]stocktwits[dot]com.

Share

·

Add us on