Texas Instruments (TXN) Stock Soars After Q2 Beat

Texas Instruments (TXN) stock is advancing Tuesday morning after the company reported earnings and revenue that beat analyst expectations.
By Annie Palmer ,

NEW YORK (TheStreet) -- Shares of Texas Instruments (TXN) - Get Report are rising by 6.52% to $70.54 Tuesday morning, after the company posted better-than-expected second quarter results after yesterday's closing bell.

The Dallas-based technology company reported earnings of 76 cents per share, a 17% year-over-year increase, compared to analyst estimates of 72 cents per share. Revenue rose 1% year-over-year to $3.27 billion, while analysts projected $3.2 billion in revenue. 

Last year, Texas Instruments posted earnings of 65 cents per share on revenue of $3.23 billion. 

The company expects third quarter revenue to land in the range of $3.34 billion to $3.62 billion and earnings per share between 81 cents and 91 cents.

Additionally, Bank of America/Merrill Lynch upgraded the stock to "buy" from "neutral," citing its defensive growth nature. The firm also raised its price target to $80 from $64.

BofA/Merrill added that they see 10% annual earnings growth as Texas Instruments shifts production to its 300 millimeter factories that deliver 40% lower chip costs.

Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:

We rate TEXAS INSTRUMENTS INC as a Buy with a ratings score of A. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its solid stock price performance, growth in earnings per share, increase in net income, notable return on equity and expanding profit margins. We feel its strengths outweigh the fact that the company shows weak operating cash flow.

You can view the full analysis from the report here: TXN

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