Texas Instruments Bracing For Earnings (TXN)

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After the close today, we’ll get to see earnings out of Texas Instruments Inc. (NYSE: TXN). The estimates for the company from First Call are $0.43 EPS on $3.28 billion in revenues.  Next quarter estimates are $0.48 EPS on $3.44 billion in revenues. Estimates for fiscal Dec-2008 are $1.97 EPS on $13.96 billion in revenues.

Analyst estimates have been coming down gradually during the quarter, and the average analyst target is right around $34.00.  Options are a bit hard to use as the expiration date is now nearly a month away, but options traders appear to be braced for a move of up to $1.60 in either direction, close to a 5% move.  This chart is an interesting one as shares are only about 10% above current 52-week lows.  To top that off, the stock has been stock between $28.00 and $32.00 for most of 2008. 

Shares are up almost 3% ahead of the report today, despite a softening mobile market being reported by many carriers.  We’ll also be paying attention to the fervor of buybacks as Texas Instruments decided it wanted to retire many shares in 2007.

Jon C. Ogg
April 21, 2008