Texas Instruments (TXN) was expected to report a 10% decline in earnings to 42 cents a share on a 7% fall in sales to $3.45 billion for the second quarter, according to a survey of analysts by Thomson Financial.

The company’s shares staged a share rally during the day rising from $37.94 to $38.79. The stock gave most of that back in the last two hours of trading. 

The late sellers must have had a crystal ball.

The company’s Q2 EPS was $.42 compared to $1.50 in the period a year ago. Q2 revenue dropped to $3.42 billion compared to $3.7 billion last year. New orders dropped $455 million year-over-year to $3.45 billion

TI expects revenue for the next quarter to be $3.49 billion to $3.79 billion and EPS to in the range of $0.46 to $0.52

After hours shares dropped 3.4%.

Douglas A. McIntyre