Is everything bigger in Texas?
Texas Instruments (TI) reported its Q2 results after Monday’s close, beating analyst estimates despite realizing approximately $50 million in costs due to the March earthquake in Japan. Earnings were $0.56 on revenue of $3.46 billion while analysts and Canaccord Genuity Technology Analyst Bobby Burleson were expecting $0.53 per share on $3.4 billion. However, investors were disappointed as Q3 guidance was less impressive, with the midpoint of both revenue and earnings estimates missing Wall Street’s expectations.
Looking ahead, the company guided earnings to $0.55-0.65 per share and revenue to $3.40-3.70 billion while the market was expecting $0.64 on $3.62 billion. Commenting on the Q2 results, CEO Rich Templeton said the company “resumed production ahead of schedule at our Japan factories that were damaged in the earthquake” and that he was “pleased with the continued success of the TI portfolio in Analog and Embedded Processing.”
Regarding guidance, Templeton said “he expects growth in the third quarter, but because of mixed macroeconomic and market signals, we are prepared for a broader-than-normal range of growth possibilities.” The company cut its guidance twice during the second quarter citing weakness at Nokia (NOK) and supply chain disruptions in Japan.
Texas Instruments (TXN : NYSE : US$31.47), Net Change: -0.31, % Change: -0.98%, Volume: 11,110,754
Canaccord Genuity Inc. is a global investment banking and institutional brokerage firm. Their website is www.canaccordgenuity.com.
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