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%.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

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.

Key Stats:

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.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials.)