Revenue: $3.50 Billion vs. $3.52 Billion consensus, missing revenue expectations.
Rich Templeton, TXN chairman, president and chief executive officer stated, “We delivered our highest-ever quarterly operating profit,” also responding to the top-line weaker number, “we expect to grow revenue again in the third quarter.”
Comment: Shares of Texas Instruments (NYSE: TXN) sold off after-the-bell following the company’s earnings release. TXN shares closed the day at $25.55, but after-hours traders were pricing shares at $24 per share, or a 6% decline.
As you can see on the chart above, shares have been range bound between $22-$28 per share this year. The hard sell-off after the closing day places the TXN share price below both the 50-day and 200-day moving averages on the chart above. A downward trend is still in tact since the end of April, so tread with caution before entering and watch for the more recent lows in the $22 price areas hold as support for future momentum again.
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Disclosure: No holdings in TXN.