Oppenheimer Maintains an 'Outperform' on Texas Instruments (TXN); Adjusting Estimates for Macro Concerns
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Price: $36.01 -1.61%
Rating Summary:
11 Buy, 23 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Rating Summary:
11 Buy, 23 Hold, 6 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 28 | New: 14
Trade TXN Now!
Oppenheimer maintains an 'Outperform' on Texas Instruments (NASDAQ: TXN) price target of $35.00.
Analyst, Rick Schafer, said, "TXN narrowed its 3Q revenue outlook around the midpoint—in line with consensus $3.34B, while narrowing EPS toward the high end at $0.40 vs consensus $0.38. Upside in EPS is being driven by lower opex and insurance proceeds of $60M (offsetting weakness in core analog/embedded). Orders/backlog have started to soften and inventory is low as customers/distributors remain reluctant to build inventory given the uncertain
macro. While we expect a relatively muted reaction in shares Wednesday, we commend management's swift action to cut opex. TI is a highly diversified industry bellwether and we expect peers are seeing similar macro-driven order sluggishness. This points to a potentially lackluster 4Q and further downward estimate adjustments for many as October earnings season approaches."
FY12 EPS estimate lowered from $1.41 to $1.38 and FY13 lowered from $1.80 to $1.65.
For an analyst ratings summary and ratings history on Texas Instruments click here. For more ratings news on Texas Instruments click here.
Shares of Texas Instruments closed at $28.58 yesterday, with a 52 week range of $25.60-$34.24.
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Analyst, Rick Schafer, said, "TXN narrowed its 3Q revenue outlook around the midpoint—in line with consensus $3.34B, while narrowing EPS toward the high end at $0.40 vs consensus $0.38. Upside in EPS is being driven by lower opex and insurance proceeds of $60M (offsetting weakness in core analog/embedded). Orders/backlog have started to soften and inventory is low as customers/distributors remain reluctant to build inventory given the uncertain
macro. While we expect a relatively muted reaction in shares Wednesday, we commend management's swift action to cut opex. TI is a highly diversified industry bellwether and we expect peers are seeing similar macro-driven order sluggishness. This points to a potentially lackluster 4Q and further downward estimate adjustments for many as October earnings season approaches."
FY12 EPS estimate lowered from $1.41 to $1.38 and FY13 lowered from $1.80 to $1.65.
For an analyst ratings summary and ratings history on Texas Instruments click here. For more ratings news on Texas Instruments click here.
Shares of Texas Instruments closed at $28.58 yesterday, with a 52 week range of $25.60-$34.24.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
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