This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TI Beats, But Shares Slip on Weak Outlook

NEW YORK (TheStreet) -- Texas Instruments (TXN - Get Report) comfortably beat Wall Street's estimates in its third-quarter results, released after market close on Monday, although weak outlook weighed on the company's shares.

The semiconductor specialist reported revenue of $3.24 billion, down from $3.39 billion in the prior year's quarter, but above Wall Street's estimate of $3.23 billion.

Excluding items, Texas Instruments earned 56 cents a share, down from 67 cents a share in the same period last year, but above the consensus estimate of 53 cents a share.

For the fourth quarter, the Plano, Texas-based firm expects sales between $2.86 billion and $3.1 billion and earnings between 42 cents and 50 cents a share. Analysts surveyed by Thomson Reuters are looking for fourth-quarter sales of $3.12 billion and earnings of 51 cents a share.

Investors were underwhelmed by the company's guidance, pushing Texas Instruments shares down 3.2% to $39.68 in extended trading.

Nonetheless, the company continues to shift its focus onto its lucrative analog and embedded processing products, away from its legacy wireless offerings.

"Our third-quarter performance reflects the positive structural changes we've made at TI over the past few years as we've focused on Analog and Embedded Processing," wrote Rich Templeton, the Texas Instruments CEO, in a statement.

Analog and embedded processing technology now accounts for 80% of Texas Instruments' revenue, eight points higher than a year ago. The firm's legacy wireless products declined to less than 2% of revenue during the third quarter.

Overall, the company's revenue was up 6% sequentially. Excluding Texas Instruments' wireless legacy products, it grew 10%.

The company's third-quarter gross margin was 54.8%, an all-time high, and it had $3.6 billion of cash and short-term investments at the end of the quarter.

Texas Instruments' book-to-bill ratio, which refers to new orders that have not yet been fulfilled, was 0.97, down from the 1.03 prior quarter, although the firm attributed this to an expected seasonal revenue decline.

--Written by James Rogers in New York.

>Contact by Email.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
TXN $57.33 0.00%
AAPL $124.75 0.00%
FB $80.78 0.00%
GOOG $524.05 0.00%
TSLA $206.79 0.00%


DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs