I guess expectations for the second half were higher than I thought....
biz.yahoo.com
TI Dinged on Skeptical Analyst Notes
Friday June 9, 12:29 pm ET
Texas Instruments Shares Drop After Analysts Question 2nd-Quarter Upside
NEW YORK (AP) -- Shares of Texas Instruments Inc. took a dip in afternoon trading on Friday after a couple analysts dismissed the company's expected earnings upside as insubstantial.
The Dallas-based company said Thursday it expects second-quarter earnings to come in ahead of previous projections -- at 46 cents to 48 cents per share, up from a previous forecast of 38 cents to 43 cents per share -- but analysts were reluctant to celebrate.
Baird analyst Tristan Gerra, who has an "Outperform" rating on the stock, called the company's mid-quarter update uninspiring, and said that excluding one-time items, guidance was only up "marginally."
"We found the tone of this conference call more muted than in recent quarters," Gerra noted. Still, he expects the company to benefit from 3G, or third-generation business over the next one to two years.
Citigroup analyst Glen Yeung was even more bearish. He cut his price target on the stock to $36 from $41, and lowered his 2007 earnings estimates to account for slowing sales of mobile phone handsets. Yeung now expects the company to report earnings of $1.72 per share in 2007, down from his previous estimate of $1.82 per share. Analysts polled by Thomson Financial expect the company to report earnings, on average, of $1.89 per share.
Texas Instruments shares, which have traded between $26.70 and $36.40 in the past year, fell 92 cents, or about 3 percent, to $29.80 on the New York Stock Exchange. |
