Texas Instruments (TXN) Looks To Deliver For Investors In Q3
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Texas Instruments Inc. (NYSE: TXN) shares are trading lower ahead of its third quarter earnings report, expected after the market closes Monday, October 19, 2009. Shares are down about 2.3% to $22.71.
Analysts currently expect TXN to report quarterly EPS of $0.39 on revenue of $2.82 billion. Texas Instruments recently raised its guidance and is looking for Q3 EPS of $0.37 - $0.41, up from $0.29 - $0.39. TI previously estimated sales for Q3 from $2.50 - $2.80 billion, and increased their estimates to between $2.73 billion and $2.87 billion. Texas Instruments company management noted, as it raised its third quarter guidance, that its high-volume analog & logic business was displaying signs that it had turned the quarter and had contributed significantly to the organization's sequential growth.
Last quarter, Texas Instruments topped EPS estimates by 2 cents, and also posted better revenue. TXN shares have been relatively flat through the quarter, seeing a slight decline of 1.1% from their July 20, 2009 close of $23.61.
According to data from Bloomberg, 4 analysts have Buy ratings on TXN, 19 have Holds and 3 have a Sell rating on the stock. Texas Instruments analysts have an average price target of $27.07.
Davenport upgraded TXN in September, from Neutral to Buy, with a price target of $30. Davenport maintained their estimates of Q309 EPS $0.40 and FY09 EPS $1.00.
JP Morgan reported on the semiconductor industry as a whole recently, saying that "orders for 4Q09 have softened somewhat amid diminishing visibility and inventory re-stocking." Texas Instruments has about a 60% exposure to industrial/communications end markets, versus 99% for AMD and 75% for RF Micro Devices. JP Morgan believes TXN will experience a Q/Q increase in its semiconductor business (estimated 94% of 2Q09 revenue) due to share gains and extended lead times. As a result, we expect TI to guide its 4Q09 revenue in line with our revenue and EPS estimates of $2.80 billion (flat Q/Q) and $0.39. We would note we are roughly in line with Consensus 4Q09 revenue and EPS estimates of $2.78 billion and $0.40.
Deutsche Bank comments on the semiconductor industry as a whole "While macro concerns are likely to persist for some time to come, continued improvement in semi demand and relatively lean inventory leave us confident in the fundamental backdrop for the group. We retain our overweight positioning on the semi group, albeit with an increasing attraction to "quality" names vs. "beta" names that have run more significantly lately and appear fully valued."
Texas Instruments will issue its Q309 results via press release at approximately 4:30 PM (EDT) on October 19, 2009. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
Analysts currently expect TXN to report quarterly EPS of $0.39 on revenue of $2.82 billion. Texas Instruments recently raised its guidance and is looking for Q3 EPS of $0.37 - $0.41, up from $0.29 - $0.39. TI previously estimated sales for Q3 from $2.50 - $2.80 billion, and increased their estimates to between $2.73 billion and $2.87 billion. Texas Instruments company management noted, as it raised its third quarter guidance, that its high-volume analog & logic business was displaying signs that it had turned the quarter and had contributed significantly to the organization's sequential growth.
Last quarter, Texas Instruments topped EPS estimates by 2 cents, and also posted better revenue. TXN shares have been relatively flat through the quarter, seeing a slight decline of 1.1% from their July 20, 2009 close of $23.61.
According to data from Bloomberg, 4 analysts have Buy ratings on TXN, 19 have Holds and 3 have a Sell rating on the stock. Texas Instruments analysts have an average price target of $27.07.
Davenport upgraded TXN in September, from Neutral to Buy, with a price target of $30. Davenport maintained their estimates of Q309 EPS $0.40 and FY09 EPS $1.00.
JP Morgan reported on the semiconductor industry as a whole recently, saying that "orders for 4Q09 have softened somewhat amid diminishing visibility and inventory re-stocking." Texas Instruments has about a 60% exposure to industrial/communications end markets, versus 99% for AMD and 75% for RF Micro Devices. JP Morgan believes TXN will experience a Q/Q increase in its semiconductor business (estimated 94% of 2Q09 revenue) due to share gains and extended lead times. As a result, we expect TI to guide its 4Q09 revenue in line with our revenue and EPS estimates of $2.80 billion (flat Q/Q) and $0.39. We would note we are roughly in line with Consensus 4Q09 revenue and EPS estimates of $2.78 billion and $0.40.
Deutsche Bank comments on the semiconductor industry as a whole "While macro concerns are likely to persist for some time to come, continued improvement in semi demand and relatively lean inventory leave us confident in the fundamental backdrop for the group. We retain our overweight positioning on the semi group, albeit with an increasing attraction to "quality" names vs. "beta" names that have run more significantly lately and appear fully valued."
Texas Instruments will issue its Q309 results via press release at approximately 4:30 PM (EDT) on October 19, 2009. Stay tuned to StreetInsider.com's Earnings section to see our analysis of the highly-anticipated quarterly results within seconds of their release.
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