TI Results and Guidance Beat, Short of Xanadu (TXN)

Communications chip giant Texas Instruments Inc. (NYSE: TXN) has just reported earnings after the close.  The non-GAAP results were $0.20  EPS on a 27% decline in revenue to $2.46 billion  This compares to Thomson Reuters estimates of $0.18 EPS and $2.41 billion in revenues.  If you back out restructuring costs, TI says that its earnings were $428 million, or $0.25 EPS.

For guidance, TI sees $0.29 to $0.39 EPS and sees $2.50 to $2.8 billion in revenues.  Estimates for next quarter are $0.27 EPS and $2.52 billion in revenues.  Unfortunately, it is also guiding next quarter tax rates at an expected 27% versus prior targets of 24%.

TI noted that sharp corrections in inventories are starting to more closely reflect demand.  The company is staying positioned for a weak economy.

Shares closed unofficially up 2.5% at $23.59 in regular trading, and the after-hours session has shares up by less than 1%.  The 52-week trading range is $13.38 to $29.14.

JON C. OGG
JULY 20, 2009