Texas Instruments may report Q2 results above expectations, UBS says
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Texas Instruments (NASDAQ:TXN) shares rose on Tuesday as investment firm UBS said the analog semiconductor company could report second-quarter revenue and earnings above Wall Street estimates, citing its proprietary Evidence Lab.
Analyst Timothy Arcuri, who has a neutral rating on Texas Instruments (TXN) shares, said the Evidence Lab monitors "real time indicators" across a number of end markets that make up roughly 41% of the company's revenue. And while the second-quarter may come in better-than-expected, there could be concerns about the third-quarter.
"While [second-quarter] should still be solid, the data supports an incrementally weakening picture heading into [third-quarter] (especially regarding consumption in China)," Arcuri wrote in a note to clients.
Arcuri expects Texas Instruments (TXN) to generate $4.8B in revenue and $2.26 per share in earnings for the second-quarter, compared to Wall Street estimates of $4.65B and $2.13, respectively.
Arcuri added that with now two-thirds of the company's revenue on consignment, Texas Instruments (TXN) is more closely connected to real-time demand than most of its peers. 
He also noted that management has been "highly conservative" with guidance over the past several quarters, which likely indicates third-quarter guidance could be down sequentially, instead of the usual 8% growth.
Looking ahead to the next quarter, Arcuri expects Texas Instruments (TXN) to have $5.17B in revenue and earn $2.43 per share, compared to estimates of $4.99B and $2.26, respectively.
Despite that, the analyst noted that investors want estimate cuts and sentiment is "solidly bearish," suggesting that the stock could move positively post-earnings.
Last week, Citi cut its estimates on Texas Instruments (TXN), pointing out worries over deteriorating demand and rising inventories.