Texas Instruments Earnings: Here’s Why Shares are Selling Off
Texas Instruments Inc. (NYSE:TXN) delivered a profit and missed Wall Street’s expectations, BUT beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 1%.
Texas Instruments Inc. Earnings Cheat Sheet
Results: Net income decreased -11.41% to $264 million (23 cents per diluted share) in the quarter versus a net gain of $298 million in the year-earlier quarter.
Revenue: Decreased 12.87% to $2.98 billion from the year-earlier quarter.
Actual vs. Wall St. Expectations: Texas Instruments Inc. reported adjusted net income of 23 cents per share. By that measure, the company missed the mean analyst estimate of $0.34. It beat the average revenue estimate of $2.95 billion.
Revenue decreased 12.09% from $3.39 billion in the previous quarter. Net income decreased 66.33% from $784 million in the previous quarter.
Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.36 to a profit $0.34. For the current year, the average estimate has moved down from a profit of $1.63 to a profit of $1.62 over the last ninety days.
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(Company fundamentals provided by Xignite Financials.)