Texas Instruments (TXN) Narrows Q3 Guidance, Shares Flat
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Texas Instruments Inc. (NYSE: TXN) narrowed the range for its quarterly earnings and revenue expectations on Thursday, as the company shows signs of concern over the demand for semiconductors in the industry.
The maker of chips for devices ranging from cell phones to televisions narrowed its third-quarter earnings from a prior view of 64 cents to 74 cents, to a range of 66 cents to 72 cents per share. The Street is currently looking for 62 cents per share in the period from the company.
Texas Instruments also narrowed its revenue guidance for the third quarter from a previous outlook of $3.55 billion to $3.85 billion to a range of $3.62 billion to $3.78 billion. The consensus for sales by the company in the period is $3.69 billion.
The new guidance from the company establishes midpoints of 69 cents per share and $3.69 billion, in line with the market view. Shares of the company have recovered after dropping off initially following the news.
Investors are seeing a trend in the sector, as the company rivals like Intel Corp. (NASDAQ: INTC) and National Semiconductor (NYSE: NSM) have issued guidance recently that disappointed investors.
A number of analysts were still positive on the company despite the guidance. Needham & Company said the tightened guidance was ahead of expectations towards the lower end of the range. The firm expects shares to hold up "remarkably well" and they reiterated their Buy rating.
Shares of Texas Instruments are down 3 cents to $23.81 in early market movement on Friday.
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The maker of chips for devices ranging from cell phones to televisions narrowed its third-quarter earnings from a prior view of 64 cents to 74 cents, to a range of 66 cents to 72 cents per share. The Street is currently looking for 62 cents per share in the period from the company.
Texas Instruments also narrowed its revenue guidance for the third quarter from a previous outlook of $3.55 billion to $3.85 billion to a range of $3.62 billion to $3.78 billion. The consensus for sales by the company in the period is $3.69 billion.
The new guidance from the company establishes midpoints of 69 cents per share and $3.69 billion, in line with the market view. Shares of the company have recovered after dropping off initially following the news.
Investors are seeing a trend in the sector, as the company rivals like Intel Corp. (NASDAQ: INTC) and National Semiconductor (NYSE: NSM) have issued guidance recently that disappointed investors.
A number of analysts were still positive on the company despite the guidance. Needham & Company said the tightened guidance was ahead of expectations towards the lower end of the range. The firm expects shares to hold up "remarkably well" and they reiterated their Buy rating.
Shares of Texas Instruments are down 3 cents to $23.81 in early market movement on Friday.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
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