Texas Instruments Inc. (NYSE: TXN) lowered guidance at its mid-quarter update. We expected this, but the magnitude here for companies reporting data later this quarter is getting worse than those which gave guidance back in October or earlier in November. TI now expects revenues of $2.3 billion to $2.5 billion with earnings of $0.10 to $0.16. If you looked at these as quick as we did, you probably did a double-take.
This compared with a previous range of $2.83 to $3.07 billion inrevenues. But the drop on the earnings side is far worse as its priorrange was $0.30 to $0.36 EPS. For whatever this is worth, the companydid note at the end of last quarter that its estimates included a $0.05benefit from the reinstatement of the federal research tax credit, andit also included charges of about $0.01 per share associated with thecompany’s restructuring actions in its Wireless business.
Thomson Reuters (First Call) had consensus estimates at $0.31 EPS on$2.91 billion in revenues. These numbers had also come downsubstantially in the last 90 days when so many companies have beenwarning.
If the semiconductor business could become a person, Will Rogers would have never said that he never met a man he didn’t like.
It seems that the bad news in chip stocks is nowhere near over. Sharesclosed at $14.82, and the 52-week trading range is $13.38 to $34.60. Shares are down close to 5% right around $14.00 after the report in after-hours trading.
Jon C. Ogg
December 8, 2008
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn a $200 bonus and up to 7X the national average with qualifying deposits. Terms apply. Member, FDIC.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.