Little Greatness at Texas Instruments

Texas Instruments Inc. (NASDAQ: TXN) ticked marginally higher right after its quarterly earnings, but this is a report that offers very little good news about the health and expectations of its chip operations. The chip giant showed a quarterly revenue decline to $3.39 billion from $3.47 billion in the same quarter a year ago. Earnings managed to rise to $0.67 per share as it made $784 million in the quarter. Thomson Reuters had estimates of $0.46 EPS and $3.34 billion in revenue, but that headline earnings report includes a $0.22 per share gain and charges of $0.07 per share. If you back this out 0.52 EPS, compared to the same estimate of $0.46 EPS.

The company blamed the drop in revenues on weak chip demand and over a spotty market. The company did note that Analog and Embedded Processing each grew revenue by 2%. Guidance is where this report gets a bit slippery with $0.23 to $0.31 EPS and it sees revenue of $2.83 to $3.07 billion. Thomson Reuters had estimates of $0.42 EPS and $3.24 billion.

Texas Instruments closed down two-cents at $27.79 against a 52-week range of $26.06 to $34.24; shares were trading up initially but we currently show shares down three-cents more to $27.72 in the after-hours.

JON C. OGG