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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: puborectalis who wrote (98214)	4/18/2000 6:52:00 AM
From: puborectalis	Respond to of 108040

Earnings: Texas Instruments Fayad Abbasi Apr 18 2000 Texas Instruments [TXN] announced earnings yesterday after the close. While the numbers were not spectacular, the prospects for the upcoming quarter and the strength of the previous quarter cement the company on the top of our recommend list. Consensus Estimates for Quarter End March 2000 Actual EPS Est. $0.53 $0.55 EPS Whisper $0.56 Rev. Est. $2.6B $2.653B Gross Margin 49.10% 49.5% Operating Margin 25.0% 25.7% Stock Price $149 Current Mkt.Cap. $123B So why was the company down in after market trading? With whisper numbers creeping up to $0.57 per share, expectations were high. The company also had some interesting notes to the quarter. For example, the company had higher than expected research and development charges. Also, the company had higher than expected other income. Remember when everyone through a fit about Intel?s [INTC] other income? Well, it seems to some degree, that was the case in the after markets yesterday for Texas Instruments as well. Going forward, there were some very positive notes we took from the conference call. The obvious one: management is expecting revenue growth to accelerate going forward. Also, capital expenditure, at $2.0B, has been increased to $2.5B. The research and development number is actually in line with what management guided for the year ? namely, a total budget of about $1.5B. Based on our model for the company, we expect the stock could reach $220 by the end of the year based on continued top line growth and attaining its expected operating margin of 25 percent. The year has just begun and we are most definitely on the Texas Instruments bandwagon. FWD this page to: