logo
  Join        Login             Stock Quote

Texas Instruments (TXN) Earnings Preview

 January 18, 2013 03:56 PM
 


(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 sector.

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.

[Related -Jobs Growth Tepid At Best]

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.

[Related -International Business Machines Corp. (IBM): A Handful Of Companies That Could Sink With Big-Blue]

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 stock.

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.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageCrude Rebound

Since the price of crude oil broke below $90 per barrel in September, the Brent global benchmark has been read on...

article imageShould You Invest In The Hottest New Trend In Finance?

Thanks to major changes in regulation, social media and technology, the business of banking has undergone read on...

article imageStrong Attractor in Action Pulling S&P 500 Down

The attractor is formed by the 200-day moving average and the 50% Fibonacci retracement of the up move from read on...

article imageIs The Weak Housing Market A Warning Sign For The US Economy?

Today’s US economic releases – housing starts and business survey data for the manufacturing sector – read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center

Related Articles:

China Sets A Floor For Growth
More Articles on: Computer and Technology



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.