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Texas Instruments (TXN) to report Q3 earnings on Tuesday. What’s in the offing?

After a bunch of fintech companies reported their quarterly earnings this week, few technology and semiconductor companies are slated to report their quarterly financial results next week. Chipmaker Texas Instruments (NASDAQ: TXN) is set to announce its third quarter 2019 earnings results on Tuesday, October 22, after the market close.

Wall Street views TI to earn $1.42 per share on revenue of $3.82 billion for the quarter ended September 30, 2019.

For the recently ended quarter, the strength of Texas Instruments’ product portfolio is expected to mitigate the risks from the competition that it is facing in the industrial and automotive end markets. The uncertainty in the macro environment and the broad-based weakness in the overall demand is likely to affect TI’s third quarter results.

Texas Instruments Q3 2019 earnings preview

In the second quarter of 2019, Texas Instruments topped analysts views. The company also guided in-line guidance for Q3. The Dallas, Texas-based company had forecasted third quarter revenue to come in the range of $3.65 billion to $3.95 billion and earnings in the range of $1.31 to $1.53 per share, which includes an estimated $10 million discrete tax benefits.

During the second quarter earnings call, TI stated that it didn’t experience any shift in its market share because of the tension between China and the US as the company’s diversity and longevity helped it to overcome the situation. Huawei accounts about 3% to 4% of TI’s revenue and the company stated that there is nothing unusual going on in China.

Read: Intel (INTC) Q2 2019 earnings results

Last month, the board of Texas Instruments increased quarterly cash dividend by 17% to $0.90 per share, payable on November 18, 2019, to stockholders of record on October 31, 2019. This dividend increase reflects the company’s strong free cash flow generation. In the 12-month period ending June 2019, Texas Instruments has paid 47% of its free cash flow in dividends.

Other chip companies that have scheduled their quarterly earnings in the next week include Teradyne (NASDAQ: TER), Xilinx (NASDAQ: XLNX), Lam Research (NASDAQ: LRCX) and Intel (NASDAQ: INTC). Almost all the semiconductor companies in the Philadelphia Semiconductor Index were trading in the negative territory today.

TXN stock, which reached a fresh 52-week high on Tuesday, was down about 1% during the midday trading. Shares of Texas Instruments have advanced 36% in the year-to-date period and 29% since this time last year.

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