Analog chip manufacturer Texas Instruments (NASDAQ:TXN) will be announcing earnings results tomorrow after market close. Here's what to look for.

Last quarter Texas Instruments reported revenues of $4.08 billion, down 12.7% year on year, missing analyst expectations by 1.4%. It was a weak quarter for the company, with underwhelming revenue guidance for the next quarter and a miss of analysts' revenue estimates.

Is Texas Instruments buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting Texas Instruments's revenue to decline 17.5% year on year to $3.61 billion, a further deceleration on the 10.7% year-over-year decrease in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.08 per share.

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company missed Wall St's revenue estimates twice over the last two years.

Looking at Texas Instruments's peers in the semiconductors segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. SMART's revenues decreased 26.7% year on year, missing analyst estimates by 0.1% and Micron Technology reported revenues up 57.7% year on year, exceeding estimates by 8.8%. SMART traded down 24.1% on the results, and Micron Technology was up 14.1%.

Read our full analysis of SMART's results here and Micron Technology's results here.

Inflation progressed towards the Fed's 2% goal at the end of 2023, leading to strong stock market performance. The start of 2024 has been a bumpier ride, as the market switches between optimism and pessimism around rate cuts due to mixed inflation data, and while some of the semiconductors stocks have fared somewhat better, they have not been spared, with share price declining 9.1% over the last month. Texas Instruments is down 6.8% during the same time, and is heading into the earnings with analyst price target of $169.7, compared to share price of $159.3.

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