Texas Instruments Triples Earnings, Stock Rises
Jacquelyn Smith, 07.19.10, 05:23 PM EDT
The semiconductor company issued results that hit right where analysts expected.
Dallas-based semiconductor company Texas Instruments issued second quarter results today that fell right in line with their expectations for earnings per share to triple for the three month period. Revenue for the quarter was $3.5 billion with net income of $769 million on earnings per share of 62 cents, compared to 20 cents per share for the same period last year.
Texas Instruments ( TXN - news - people ) adjusted their outlook in early June to narrow the range to $3.45 billion to $3.59 billion on EPS of 60 cents to 64 cents. Not only did the results fall within the company's forecasted span, but analysts polled by Thompson Reuters hit it dead on.
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"It was an in-line quarter with slight upside on guidance," Oppenheimer & Co. analyst Rick Schafer said. "But semi-conductors tend to be the last industry to see a shift and investors don't have a lot of confidence in the industry." However, Schafer said Texas Instruments is expected to outperform in the underperformed sector because they are diverse, defensive and well poised.
"Our Analog and Embedded Processing businesses turned in double-digit sequential growth, outpacing their respective markets and again confirming their ability to positively impact the financial performance of TI. As a result, we delivered our highest-ever quarterly operating profit," said CEO Richard Templeton. "Orders were strong in the quarter, backlog increased and we expect to grow revenue again in the third quarter."
The company, which operates their four segments in more than 30 countries, issued guidance for the third quarter of revenue in the range of $3.55 to 3.85 billion on earnings of 64 cents to 74 cents per share, but they plan to update the outlook on September 9.
Investors sent shares of Texas Instruments up 3.2%, or 78 cents to $25.55 at the close on Monday, but they fell 5.6% or $1.44 to $24.11 in after-hours trading. Elsewhere in the semiconductor industry at the market's close, shares of STMicroelectronics N.V. ( STM - news - people ) and Intel ( INTC - news - people ) were up .6% and 2.7%, respectively. |
