(By Balachander) Texas Instruments Inc. (NASDAQ: TXN) is expected to
post lower fourth-quarter earnings and revenue as macro-economic
concerns continue to mute growth and recovery in the semiconductor
Wall Street analysts, on average, expect the chip maker's earnings
per share (EPS) to drop 29 percent to 34 cents and revenue to decline
13.80 percent to $2.95 billion for the quarter ended December.
Dallas-based Texas Instruments is due to report its quarterly results on Jan.22.
Last month, the company narrowed its fourth quarter revenue outlook
around the midpoint—in line with consensus at $2.95 billion while
narrowing EPS guidance to 7 cents versus the prior 27 cents to account
for charges associated with the restructuring of the Wireless business.
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Texas Instruments, or TI, appears to be seeing continued broad-based
weakness across most of its business. The computing, communications and
industrial end markets were characterized as generally weak, with
consumer and automotive described as mixed.
The company's higher margin analog businesses are driving growth.
However, its decision in September 2012 to end investment in the
wireless smartphone/tablet business is likely to present a material
headwind to sales over the next 18-24 months.
TI is likely too broad/diverse to overcome near-term macro
sluggishness despite the company is positioned for long-term success in
core analog/ embedded.
For the full year, the company is expected to earn $1.62 a share on revenue fall of 6.90 percent to $12.79 billion.
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During the last month, six analysts have recommended TXN as "Strong
Buy" and six analysts gave "Buy" rating, while 24 analysts gave "Hold"
rating on the stock. There is no analyst to recommend "Sell" on the
In the preceding third quarter, the company posted posted mixed
quarterly results. EPS increased 31 percent to 67 cents and included 7
cents of charges related to TXN's acquisition of National Semiconductor.
EPS also includes a benefit of 22 cents for changes in taxes and a
Japanese pension program. Revenue declined 2 percent to $3.39 billion.
On a sequential basis, the company's earnings and revenue rose 5 percent and 2 percent, respectively for the third quarter.
The stock has been trading in the 52-week range of $26.06 to $34.24.