Watch These Key Price Levels: Texas Instruments Stock Jumps on Strong Q1 Results and Guidance

Investors in Texas Instruments (TXN) had reason to celebrate as the company’s shares surged nearly 8% in extended trading on Tuesday following the release of its impressive quarterly results and optimistic guidance for the current quarter. The analog chipmaker exceeded Wall Street’s expectations, reporting earnings of $1.20 per share for the quarter ending March 31, well above the forecasted $1.07 per share. Despite a 16% decline in revenue year-over-year, Texas Instruments still managed to beat estimates with revenue of $3.66 billion for the quarter.

Key Highlights from the Report

• Texas Instruments posted earnings of $1.20 per share, surpassing analysts’ expectations.
• Revenue for the quarter came in at $3.66 billion, beating estimates.
• The company provided current-quarter revenue guidance of $3.65 billion to $3.95 billion, exceeding analyst expectations.

Looking ahead, Texas Instruments anticipates revenue in the range of $3.65 billion to $3.95 billion for the current quarter, with a midpoint of $3.8 billion that outperforms the $3.77 billion expected by analysts. Earnings guidance for the period is projected to be between $1.05 and $1.25 per share, aligning closely with estimates.

CFO Rafael Lizardi shared insights on the company’s performance, noting that most industrial equipment customers have addressed inventory backlogs, although some are still in the process, leading to an uneven recovery in demand. The company’s positive outlook also signals a rebound in markets such as personal computers and smartphones, which have shown signs of improvement after a period of soft demand.

Technical Analysis and Price Levels to Watch

Despite recent fluctuations in the Texas Instruments share price, investors should keep a close eye on key price levels that could indicate future movements. The stock recently broke below the lower trendline of an ascending triangle and the 200-day moving average but has shown resilience in the past two trading sessions leading up to the earnings announcement.

Traders should monitor whether the stock can close above the top trendline of the ascending triangle around $176. A successful breakout above this level could confirm a bear trap and potentially trigger a move towards a crucial horizontal trendline situated at $185.50.

Following the earnings announcement, Texas Instruments shares climbed 7.7% to $178.18 in after-hours trading on Tuesday, signaling positive investor sentiment towards the company’s performance.

Conclusion

With Texas Instruments exceeding expectations in both earnings and revenue for the first quarter and providing upbeat guidance for the current quarter, investors are optimistic about the company’s future prospects. The recovery in demand across various markets bodes well for Texas Instruments, and technical analysis suggests potential upside if key price levels are breached.

As always, investors should conduct thorough research and consider their risk tolerance before making any investment decisions. Stay informed about market developments and monitor key price levels to make informed choices when trading Texas Instruments stock.

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