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
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