Tony and All,
Interesting quotes from article about TI's earnings release. thestreet.com
"the news was still a bit of a surprise to analysts and investors who had expected TI to meet its numbers. Merrill Lynch analyst Joe Osha, for instance, put out a note Monday saying he didn't expect a miss, though he also said he saw no chance for an upside surprise."
As I believe Joe and most analyst "models" amounts to nothing more than a guess, looks like he guessed wrong this time.
"Wall Street has been skeptical about some competitors going through with their plans to actually increase spending this year"
The competitors in the above quote are I believe Intel.
"TI had been considered to be in a better position than chipmakers like Intel (INTC:Nasdaq - news) and Advanced Micro Devices (AMD:NYSE - news), both of which mainly make chips for PCs, a lousy market these days. Dell (DELL:Nasdaq - news), for instance, warned Monday that its earnings wouldn't be up to snuff in the fourth quarter ended Feb. 2.
TI, meanwhile specializes in chips for cell phones and wireless applications, considered a stronger market. (TheStreet.com looked at this issue recently thestreet.com And it was this focus that was expected to make it easier for TI to get through these tough times in the chip market."
Wall street was/is indeed skeptical of Intel. Of it's capital spending increase and it's "true" purpose. They were also skeptical of Q1 15% downside projection being Intel specific, versus economic related, as Intel stated. Well, Wall St and analysts like Drew Peck and Joe Osha must be getting a rude awakening to the fact that it may not be "the PC is dead", but that the "economy is dead", as evidenced by the non-PC related TI 10% downside projection. No doubt, they will find other excuses to dismiss this data point from TI and continue to spew out the "PC is dead" party line.
SK |
