Texas Instruments Earnings Beat, and Revenue Just Below Expectations - Analyst Blog

By Brian Hamilton,

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A leading semiconductor manufacturer, Texas Instruments ( TXN ), reported earnings after the bell, posting an EPS of $0.58 and revenue of $3.05 billion.  The EPS beat the Zacks Consensus Estimate of $0.46, and was just below our revenue expectations of 3.06 billion.   

This was the fifth consecutive positive earnings surprise by this company (average has been 10.18%).  The results included a "gain associated with the transfer of wireless connectivity technology to a consumer and higher than expected charges associated with previously announced restructuring."  The positive surprise caused the stock to jump over 2% in afterhours trading activity, under light volume. 

Texas Instruments CEO Rich Templeton stated, "Our revenue ended the quarter as expected, up 6 percent sequentially. Excluding legacy wireless, revenue grew 8 percent; our positions in industrial and automotive markets were important contributors to the sequential growth in revenue. Additionally, backlog increased, and with it, visibility into the second half improved."  Moreover, TXN also spent $1.0 billion on dividends and share repurchases this quarter. 

These factors have encouraged investors to remain positive on the stock, and their future growth levels.  Mr. Templeton stated that for the third quarter, they expect an EPS, between $0.49 and$0.57.  Currently, Zacks EPS Estimate for Q3 is $0.56. 

Zacks will post a detailed earnings report on TXN tomorrow morning.  Currently, TXN is rated a Zacks Rank #3 (Hold). 

Both Altera Corp ( ALTR ), and Linear Tec Corp ( LLTC ), both report earnings tomorrow July 23, after the market closes.

ALTERA CORP (ALTR): Free Stock Analysis Report

LINEAR TEC CORP (LLTC): Free Stock Analysis Report

TEXAS INSTRS (TXN): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Business , Earnings , Stocks
Referenced Stocks: ALTR , LLTC , TXN

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