Nucor earnings beat by $0.08, revenue fell short of estimates
Investing.com - Texas Instruments (NASDAQ:TXN), a $195 billion semiconductor giant, saw its stock fall after Cantor Fitzgerald reiterated its Neutral rating and $200 price target following the company’s latest earnings report. According to InvestingPro analysis, the stock appears overvalued at current levels, trading near its 52-week high of $221.69.
The semiconductor manufacturer reported results that exceeded consensus estimates but fell short of more elevated investor expectations. With revenue of $16.05 billion in the last twelve months and a solid financial health score of 2.42 (FAIR) from InvestingPro, management’s tone was "definitively more cautious" than approximately 50 days ago, when they had projected accelerating quarterly revenue growth throughout the year.
Texas Instruments noted a cyclical recovery in four of five markets, removing automotive from the recovery conversation following a down quarter. The company specifically highlighted its China Industrial business "running hot" in the June quarter, with Industrial growing 18% year-over-year and China up 32% year-over-year, led by Industrial growth.
Cantor Fitzgerald expressed concern that this strong performance in China Industrial suggests "an inventory build by selective customers ahead of potential tariffs," raising a "red flag" about tariff-related pull-ins that could worry investors.
The firm maintained its $200 price target, representing approximately 30 times its calendar year 2026 earnings per share estimate, while noting a "minor silver lining" in recent legislation passed by Congress that could significantly lower the company’s cash tax rate in 2026 and beyond.
In other recent news, Texas Instruments reported a 16% year-over-year increase in second-quarter 2025 revenue, reaching $4.4 billion. The company’s earnings per share (EPS) came in at $1.41, surpassing the forecasted $1.35. Despite these strong financial results, the stock experienced a slight decline in aftermarket trading. Mizuho (NYSE:MFG) adjusted its price target for Texas Instruments to $200, down from $205, while maintaining a Neutral rating. The company guided for third-quarter revenue of $4.63 billion, slightly ahead of the $4.57 billion consensus. Rosenblatt Securities reiterated its Buy rating and maintained a $245.00 price target, noting a modest guidance increase for the third quarter. Citi also reiterated a Buy rating with a $260.00 price target, highlighting strength primarily driven by upside from China. These developments reflect a mixed analyst sentiment following the earnings announcement.
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