Needham & Company Maintains a 'Hold' on Texas Instruments (TXN); Cutting Estimates
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Price: $283.58 +1.43%
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 maintains a 'Hold' on Texas Instruments (NASDAQ: TXN).
Analyst, Vernon Essi, Jr, said, "TI lowered its Q1 guidance during its mid quarter update to $2.99B from $3.11B in revenue (or an 11% decline Q/Q vs. prior guidance of an 8% Q/Q decline) and to $0.15 from $0.19 in EPS. TI attributed all of the weakness to the Wireless segment. Demand for OMAP came in weaker than expected as customers that contributed to strong growth in recent quarters (primarily Amazon) began to rationalize their sales forecasts and inventories post holiday season. TI remained confident that Q1 is the likely bottom of the current cycle as other product areas are performing to expectations, with a strengthening of orders, improving backlog and visibility, and low inventory levels at customers and distributors. We downgraded TI to a Hold on 1/24. Since end-January, the stock is down ~2%, vs. SOX index up >1%. We remain cautious on TXN shares, though if a general pullback were to occur, we could become more constructive on the name again."
"We reduce our 2012E revenue/non-GAAP EPS from $13.9B/$1.80 to $13.6B/$1.65, and our 2013E revenue/non-GAAP EPS from $15.1B/$2.45 to $14.9B/$2.35."
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 $32.60 yesterday.
Analyst, Vernon Essi, Jr, said, "TI lowered its Q1 guidance during its mid quarter update to $2.99B from $3.11B in revenue (or an 11% decline Q/Q vs. prior guidance of an 8% Q/Q decline) and to $0.15 from $0.19 in EPS. TI attributed all of the weakness to the Wireless segment. Demand for OMAP came in weaker than expected as customers that contributed to strong growth in recent quarters (primarily Amazon) began to rationalize their sales forecasts and inventories post holiday season. TI remained confident that Q1 is the likely bottom of the current cycle as other product areas are performing to expectations, with a strengthening of orders, improving backlog and visibility, and low inventory levels at customers and distributors. We downgraded TI to a Hold on 1/24. Since end-January, the stock is down ~2%, vs. SOX index up >1%. We remain cautious on TXN shares, though if a general pullback were to occur, we could become more constructive on the name again."
"We reduce our 2012E revenue/non-GAAP EPS from $13.9B/$1.80 to $13.6B/$1.65, and our 2013E revenue/non-GAAP EPS from $15.1B/$2.45 to $14.9B/$2.35."
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 $32.60 yesterday.
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