Canaccord Genuity Morning Coffee on Texas Instruments (TXN): Everything is Bigger in Texas
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Price: $174.81 --0%
Rating Summary:
18 Buy, 23 Hold, 6 Sell
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Today's Overall Ratings:
Up: 10 | Down: 10 | New: 5
Rating Summary:
18 Buy, 23 Hold, 6 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 10 | New: 5
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Canaccord Genuity Morning Coffee on Texas Instruments (Nasdaq: TXN): Everything is bigger in Texas.
Texas Instruments reported upside revenue and guided Q2 above consensus Monday after the close. Revenues and EPS were $3.121 billion and $0.22, compared to consensus estimates of $3.06 billion and $0.29 and Canaccord Technology Analyst Bobby Burleson’s estimates of $3.05 billion and $0.17). Revenue declined 8% Q/Q and 9% Y/Y largely due to a sharp decline in wireless revenue as the company continues to exit the baseband business. During the quarter, sales in Embedded Processing and Other increased 7% Q/Q and 5% Q/Q, respectively. While TI's OMAP processor has achieved some strong design wins over the past year, Burleson believes competition from Qualcomm (Nasdaq: QCOM), Broadcom (Nasdaq: BRCM), and NVIDIA (Nasdaq: NVDA) may constrain future growth. He also believes the National Semiconductor acquisition brought product overlap in communications and other analog areas. Looking ahead, management guided revenue well above the consensus view, up 3% to 12% sequentially (a midpoint of $3.35 billion). Excluding the $65 million in Q1 insurance proceeds, Q2 revenue would be up 3% to 14% sequentially. Following the results, Burleson is adjusting his estimates and now sees Q2 earnings at $0.35 per share on revenue of $3.35 billion, up from his previous estimate of $0.32 on $3.25 billion. For the full year, he is forecasting $1.47 per share on revenue of $13.73 billion versus his prior forecast of %1.23 on $13.23 billion.
Texas Instruments reported upside revenue and guided Q2 above consensus Monday after the close. Revenues and EPS were $3.121 billion and $0.22, compared to consensus estimates of $3.06 billion and $0.29 and Canaccord Technology Analyst Bobby Burleson’s estimates of $3.05 billion and $0.17). Revenue declined 8% Q/Q and 9% Y/Y largely due to a sharp decline in wireless revenue as the company continues to exit the baseband business. During the quarter, sales in Embedded Processing and Other increased 7% Q/Q and 5% Q/Q, respectively. While TI's OMAP processor has achieved some strong design wins over the past year, Burleson believes competition from Qualcomm (Nasdaq: QCOM), Broadcom (Nasdaq: BRCM), and NVIDIA (Nasdaq: NVDA) may constrain future growth. He also believes the National Semiconductor acquisition brought product overlap in communications and other analog areas. Looking ahead, management guided revenue well above the consensus view, up 3% to 12% sequentially (a midpoint of $3.35 billion). Excluding the $65 million in Q1 insurance proceeds, Q2 revenue would be up 3% to 14% sequentially. Following the results, Burleson is adjusting his estimates and now sees Q2 earnings at $0.35 per share on revenue of $3.35 billion, up from his previous estimate of $0.32 on $3.25 billion. For the full year, he is forecasting $1.47 per share on revenue of $13.73 billion versus his prior forecast of %1.23 on $13.23 billion.
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