Texas Instruments Sounds Tenuous Note
Updated from 5:23 p.m. EST
Slumping chip demand pressured Texas Instruments' (TXN) sales in the fourth quarter, with revenue down 8% sequentially.
And while the Dallas chipmaker said it believed the chip market's current correction will be short-lived, TI guided first-quarter results below current estimates and said it plans to cut about 500 jobs to lower costs.
TI said revenue in the fourth quarter totaled $3.46 billion, slightly ahead of Wall Street's dampened expectations of $3.42 billion.TI had net income of $668 million, or 45 cents a share, up from $650 million, or 40 cents a share, a year ago. The results included a 5-cent-a-share benefit from the reinstatement of a federal research tax credit as well as a one-cent benefit from new patent license agreements. Excluding those results, TI's EPS was 39 cents a share, a penny higher than Wall Street expectations, and at the high end of its guided range of between 37 cents and 40 cents a share. TI credited its strategy of outsourcing some of its manufacturing to third-party chip factories, or foundries, for its stable profitability during a period of "unseasonably weak" demand. TI
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV