Needham & Company Reiterates a 'Buy' on Texas Instruments (TXN); Q2 Results Above Street, Conservatism Tempers Q3 Guide
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Price: $284.32 +1.70%
Rating Summary:
24 Buy, 22 Hold, 5 Sell
Rating Trend:
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Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
Rating Summary:
24 Buy, 22 Hold, 5 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 12 | Down: 21 | New: 20
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Needham & Company reiterates a 'Buy' on Texas Instruments (NYSE: TXN) price target of $38.00
TI posted Q2 results that were above Street estimates, however the Q3 earnings guidance came in lighter than expectations. TI issued cautionary statements for Q3 citing lackluster growth in computing and consumer electronics (particularly TVs and gaming consoles) as the company heads into what are typically higher growth periods. Gross margin was flattish Q/Q but remained lower than normal, hampered by $50M in costs related to the Japan crisis. Management was encouraged by the recovery in Japan, strong disty resales in Asia, and share gains in Analog and MCU (the latter more evident given the lackluster results from MCU competitors) and is prepared for possible upside. We adjusted our 2011 revenue/EPS from $14B/$2.41 to $14B/$2.38 and left our 2012 revenue/EPS unchanged at $14.6B/2.75. We continue to believe that TXN shares are worth 13 times 2012 EPS plus cash or $38 on our 2012 EPS of $2.75 and net cash per share of $2.74.Needham analyst says. "
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 $31.78 yesterday.
TI posted Q2 results that were above Street estimates, however the Q3 earnings guidance came in lighter than expectations. TI issued cautionary statements for Q3 citing lackluster growth in computing and consumer electronics (particularly TVs and gaming consoles) as the company heads into what are typically higher growth periods. Gross margin was flattish Q/Q but remained lower than normal, hampered by $50M in costs related to the Japan crisis. Management was encouraged by the recovery in Japan, strong disty resales in Asia, and share gains in Analog and MCU (the latter more evident given the lackluster results from MCU competitors) and is prepared for possible upside. We adjusted our 2011 revenue/EPS from $14B/$2.41 to $14B/$2.38 and left our 2012 revenue/EPS unchanged at $14.6B/2.75. We continue to believe that TXN shares are worth 13 times 2012 EPS plus cash or $38 on our 2012 EPS of $2.75 and net cash per share of $2.74.Needham analyst says. "
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 $31.78 yesterday.
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