Texas Instruments just reported earnings: $0.35 EPS & REvenues were $3.19 Billion. Estimates were previously given as $3.07 to $3.22 Billion in revenues on earnings per share of $0.29 to $0.33 non-GAAP EPS. Analyst estimates were $0.31 EPS & $3.1 Billion in revenues.
Revenue guidance was put at $3.32 to $3.6 Billion versus estimates of $3.35 Billion. The company is also saying that revenue growth is expected to resume in Q2. Its gross margin remained above 50 percent and operating margin remained above 20 percent.
Rich Templeton, TI president and CEO: "We believe the inventory correction that began in the second half of last year largely ended in the first quarter. Orders are beginning to rebound, and we expect sequential growth to resume in the second quarter."
As higher-end phones have been somewhat weak, it was hard to be overly excited when the street was already looking for another drop. Wall Street is taking this as a win, despite the revenue shortfall, because they tone out of the company is not a solemn one and the revenue guidance was more important than what was in the rearview mirror. Shares of TXN closed down 0.28% in normal trading at $32.41, but shares have popped 6% to $34.50 in after-hours reaction.
Jon C. Ogg
April 23, 2007
Jon Ogg can be reached at [email protected]; he does not own securities in the companies he covers.
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