Benzinga | Apr 26, 2021 11:26AM EDT

A Preview Of Texas Instruments's Earnings

On Tuesday, April 27, Texas Instruments (NASDAQ:TXN) will report its last quarter's earnings. Here is Benzinga's preview of the company's release.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Analysts expect Texas Instruments earnings of $1.58 per share. Revenue will likely be around $3.99 billion, according to the consensus estimate. In the same quarter last year, Texas Instruments reported EPS of $1.14 on revenue of $3.33 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.

The Wall Street estimate would represent a 38.6% increase in the company's earnings. Revenue would be up 19.86% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q4 2021 Q3 2020 Q2 2020 Q1 2020EPS Estimate 1.34 1.27 0.86 1EPS Actual 1.80 1.45 1.48 1.24Revenue Estimate 3.60 B 3.43 B 2.91 B 3.17 BRevenue Actual 4.08 B 3.82 B 3.24 B 3.33 B

Stock Performance

Over the last 52-week period, shares of Texas Instruments are up 67.36%.

Do not be surprised to see the stock move on comments made during its conference call. Texas Instruments is scheduled to hold the call at 16:30:00 ET and can be accessed here.