Auriga Tweaks Estimates on Texas Instruments (TXN) Following Q1 Results Q2 Guidance
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Price: $174.81 +5.64%
Rating Summary:
18 Buy, 23 Hold, 6 Sell
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Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
Rating Summary:
18 Buy, 23 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 13 | Down: 11 | New: 14
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Auriga is maintaining its Sell rating and $27 price target on shares of Texas Instruments (NYSE: TXN) following slightly weak Q1 results and Q2 guidance.
The company stated that Q2 guidance would have shown double digit percent growth Q/Q if it wasn't for the March 11 quake in Japan. Currently aggressive ordering by OEMs are ensuring supply flow and offsetting most of
the near-term demand weakness.
The firm reports it is a little pessimistic that TXN will see the sort of sales rebound in H2 that management believes is on the way.
During Q1 excluding the impact of wireless, DOI would have been ~90 days an inventory drawdown could form an additional gross margin headwind over the next several quarters; excluding Japan, Y/Y operating profit down $20 million on nearly $200 million higher sales. Gross margins also seemed to be running lower by 100-250bps Y/Y.
Auriga is tweaking its Q2 revenue and EPS estimates from $3.5 billion and $0.61 to $3.6 billion and $0.61 and its FY11 estimates from $14.1 billion and $2.48 to $14.3 billion and $2.50. The firms current FY12 estimates are $14.8 billion and $2.66.
For more ratings news on Texas Instruments click here and for the rating history of Texas Instruments click here.
Shares of Texas Instruments closed at $34.79 yesterday.
The company stated that Q2 guidance would have shown double digit percent growth Q/Q if it wasn't for the March 11 quake in Japan. Currently aggressive ordering by OEMs are ensuring supply flow and offsetting most of
the near-term demand weakness.
The firm reports it is a little pessimistic that TXN will see the sort of sales rebound in H2 that management believes is on the way.
During Q1 excluding the impact of wireless, DOI would have been ~90 days an inventory drawdown could form an additional gross margin headwind over the next several quarters; excluding Japan, Y/Y operating profit down $20 million on nearly $200 million higher sales. Gross margins also seemed to be running lower by 100-250bps Y/Y.
Auriga is tweaking its Q2 revenue and EPS estimates from $3.5 billion and $0.61 to $3.6 billion and $0.61 and its FY11 estimates from $14.1 billion and $2.48 to $14.3 billion and $2.50. The firms current FY12 estimates are $14.8 billion and $2.66.
For more ratings news on Texas Instruments click here and for the rating history of Texas Instruments click here.
Shares of Texas Instruments closed at $34.79 yesterday.
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