Can Texas Instruments Mid-Quarter Update Rescue Chip Stocks? (TXN)

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Texas Instruments Inc. (NYSE: TXN) is set to report its mid-quarter update on Monday.  What is expected to be a short press release will come after the close.  The chip giant issued guidance with last quarter’s earnings as follows:

  • Total TI revenues of $3.27 billion to $3.55 billion;
  • Semiconductor revenues $3.20 billion to $3.46 billion;
  • Education Tech revenues, $70 million to $90 million.
  • EPS in the range of $0.43 to $0.49.

On last look, First Call showed estimates of $0.46 EPS on $3.4 Billion in revenues.  If you use options trading for an indicator, the current month contract did get a bit more active on Friday and it appears that options are pricing in a move of $0.55 to $0.80 in either direction.

The company did just give an update last week at a Morgan Stanley conference so conventional wisdom would at least lend credence to the company not announcing the world become much uglier in the last few days.

Shares closed up marginally Friday at $29.30, and shares are at the bottom of a trading range of $28.00 to $39.63 seen over the last 52-weeks.

Jon C. Ogg
March 8, 2008