) or "TI" narrowed its revenue and earnings expectations for the
fourth quarter of 2013.
The chipmaker now expects sales of $2.92 billion-$3.04 billion
versus its previous guidance of $2.86 billion-$3.10 billion. The
earnings outlook has also been narrowed to 44 cent-48 cents per
share from 42 cents-50 cents.
Though the chipmaker has tightened its guidance range, the
mid-point remains unchanged. According to data compiled by
Bloomberg, analysts expect sales of $2.99 billion, slightly above
the mid-point of management's guidance of $3.98 billion. However,
earnings expectations of 46 cents were in line with management's
Management stated that while the demand for its chips used in
automotives market is improving, orders from other industrial
customers are weakening.
Like other chipmakers, TI has struggled in the recent quarters
due to a slow global economy and weak consumer spending. To
maintain the growth momentum, the company responded in part by
cutting costs and trying to expand the use of its application
processors on embedded solutions for the automobile, industrial
and other non-consumer markets, which have a longer life
Texas Instruments is one of the largest suppliers of analog
and digital signal processing integrated circuits. The company's
compelling product line-up, increasing differentiation in its
business, restructuring activities and lower-cost 300-mm capacity
should drive earnings in the longer term. In the second quarter,
TI posted decent results, with the top-line numbers surpassing
Other Stocks to Consider
Currently, Texas Instruments has a Zacks Rank #3 (Hold). Other
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