What is interesting is that as with most “tech companies raising guidance” we are seeing a muted reaction. A few months ago it would have been the mark of the recovery. But now it is a ho-hum expected event. The comparison to a year ago is that in the September 2009 quarter was $0.44 EPS and $3.387 billion in revenues.
In short, traders have already seen almost a double off of lows. So why bother celebrating a 12% drop in earnings at the mid-point and a larger drop off in revenues. And as for forward valuations, those are getting stretched. This is the new normal. We don’t want to bash the company and that is not the point, but this is the reason that many tech companies are not surging forward. Stocks close to 52-week highs and up almost 100% are just hard to get excited over when the raised guidance is far shy of when times were already getting tough.
TI shares closed up 0.3% at $25.14 but shares are up 2% at $25.14 in the after-hours session. The 52-week trading range is $13.38 to $25.33.
Jon C. Ogg
September 9, 2009
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