Friday, April 25, 2008 4:45:12 PM
TI Steady After Disappointment? Here's Why
Posted By:Jim Goldman
Texas Instruments
L.m. Otero / AP
You'd think with the 3-plus percent rally in Texas Instruments' shares headed into tonight's earnings, this company would be plunging now, after missing numbers across the board.
But that's the joy of the markets right now: good news is great; great news is stratospheric; and bad news is, well, just expected -- so it's not all that "newsy."
Texas Instruments Inc reported 49 cents per share on $3.27 billion, but that EPS figure also included a 6-cent, one-time discrete tax benefit, so the apples-to-apples comparison with the Thomson consensus is 43 cents, or right in line with expectations. Revenue was a little lighter than the $3.28 billion expected by analysts.
TI also reports $3.22 billion in orders, which is noticeably down from the $3.48 billion the company reported in its fourth quarter.
"That's a problem," John Lau at Jefferies tells me. That's another strong indication of a slowdown, and dovetails with TI's far weaker-than-expected guidance.
Texas Instruments now anticipates an EPS range of 42 cents to 48 cents, far below the 51 cents Wall Street expected. The revenue range the company is providing is also well below consensus: $3.24 billion to $3.5 billion versus the $3.51 billion Street analysts were projecting.
Lau at Jefferies thought Texas Instruments would beat the Street for its first quarter. But as one of the Top 3 chip companies in the world, the top analog company in the world, it's gonna take a lot to hurt them, he says. Strong cash flow, no debt, and good trends longer term, he says, makes TI one of the top quality chip companies in the world.
It all comes to down to analog. And cash flow generation. And no debt. And that defendable market share position.
Analog players that have all seen big-time gains these last few months.
Texas Instruments hasn't yet played in those kinds of rallies, but now that we have an idea of where its business is going, some analysts are telling me it's poised to pick up momentum, since big funds will see the trends shaping up at these smaller players, and want to snap up TI at its bottom. And this might be viewed as the bottom.
And that might be the best reason yet why the company is weathering less than stellar guidance, as investors start looking at the company longer-term, seeing real growth potential just over the horizon.
Questions? Comments? TechCheck@cnbc.com
Recent TXN News
- TI CEO Haviv Ilan to speak at Bernstein investor conference • PR Newswire (US) • 05/09/2024 04:46:00 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 09:19:28 PM
- Texas Instruments board declares second quarter 2024 quarterly dividend • PR Newswire (US) • 04/25/2024 08:17:00 PM
- Futures Pointing To Sharply Lower Open On Wall Street • IH Market News • 04/25/2024 01:09:21 PM
- U.S. Futures Drop in Pre-Market Trading as Tech Stocks Plunge After Meta Issues Gloomy Forecast • IH Market News • 04/25/2024 11:53:54 AM
- U.S. Stocks Finish Lackluster Session Little Changed • IH Market News • 04/24/2024 08:33:00 PM
- Upbeat Earnings News May Lead To Extended Rebound On Wall Street • IH Market News • 04/24/2024 01:09:05 PM
- Tesla Surges 12% with 2025 Affordable Vehicle Promise, Evotec Slumps 36% on Uncertain Outlook, and Latest Earnings • IH Market News • 04/24/2024 11:29:58 AM
- TI reports first quarter 2024 financial results and shareholder returns • PR Newswire (US) • 04/23/2024 08:01:00 PM
- U.S. Index Futures Rise in Pre-Market, Oil Prices Dip Slightly • IH Market News • 04/23/2024 11:26:41 AM
- Texas Instruments to webcast its 2024 annual meeting of stockholders • PR Newswire (US) • 04/08/2024 05:52:00 PM
- Texas Instruments to webcast Q1 2024 earnings conference call • PR Newswire (US) • 04/02/2024 03:27:00 PM
- TI to showcase technologies for a safer, smarter and more sustainable future at embedded world 2024 • PR Newswire (US) • 03/13/2024 09:02:00 AM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 10:00:50 PM
- Form 3 - Initial statement of beneficial ownership of securities • Edgar (US Regulatory) • 03/05/2024 09:58:59 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/20/2024 10:29:56 PM
- Rice University President Reginald DesRoches to join TI board of directors • PR Newswire (US) • 02/20/2024 09:54:00 PM
- New portfolios from TI push the limits of power design further, help engineers achieve industry-leading power density • PR Newswire (US) • 02/20/2024 02:02:00 PM
- TI CEO Haviv Ilan to speak at Morgan Stanley investor conference • PR Newswire (US) • 02/14/2024 07:22:00 PM
- Form SC 13G/A - Statement of acquisition of beneficial ownership by individuals: [Amend] • Edgar (US Regulatory) • 02/13/2024 10:15:54 PM
- Form 8-K - Current report • Edgar (US Regulatory) • 02/08/2024 06:59:32 PM
- Texas Instruments prices $3.0 billion of investment grade notes • PR Newswire (US) • 02/06/2024 12:54:00 AM
- Form 424B5 - Prospectus [Rule 424(b)(5)] • Edgar (US Regulatory) • 02/05/2024 01:51:39 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/02/2024 10:14:46 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 02/02/2024 10:10:38 PM
Avant Technologies Equipping AI-Managed Data Center with High Performance Computing Systems • AVAI • May 10, 2024 8:00 AM
VAYK Discloses Strategic Conversation on Potential Acquisition of $4 Million Home Service Business • VAYK • May 9, 2024 9:00 AM
Bantec's Howco Awarded $4.19 Million Dollar U.S. Department of Defense Contract • BANT • May 8, 2024 10:00 AM
Element79 Gold Corp Successfully Closes Maverick Springs Option Agreement • ELEM • May 8, 2024 9:05 AM
Kona Gold Beverages, Inc. Achieves April Revenues Exceeding $586,000 • KGKG • May 8, 2024 8:30 AM
Epazz plans to spin off Galaxy Batteries Inc. • EPAZ • May 8, 2024 7:05 AM