TI Results and Guidance Beat, Short of Xanadu (TXN)

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By Douglas A. McIntyre Updated Published

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Communications chip giant Texas Instruments Inc. (NYSE: TXN) has just reported earnings after the close.  The non-GAAP results were $0.20  EPS on a 27% decline in revenue to $2.46 billion  This compares to Thomson Reuters estimates of $0.18 EPS and $2.41 billion in revenues.  If you back out restructuring costs, TI says that its earnings were $428 million, or $0.25 EPS.

For guidance, TI sees $0.29 to $0.39 EPS and sees $2.50 to $2.8 billion in revenues.  Estimates for next quarter are $0.27 EPS and $2.52 billion in revenues.  Unfortunately, it is also guiding next quarter tax rates at an expected 27% versus prior targets of 24%.

TI noted that sharp corrections in inventories are starting to more closely reflect demand.  The company is staying positioned for a weak economy.

Shares closed unofficially up 2.5% at $23.59 in regular trading, and the after-hours session has shares up by less than 1%.  The 52-week trading range is $13.38 to $29.14.

JON C. OGG
JULY 20, 2009

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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