Texas Instruments Earnings: Here’s Why the Stock is Down Now

Texas Instruments Inc. (NYSE:TXN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are down 0.03%.

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Texas Instruments Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share were the same at $0.32 in the quarter as EPS of $0.32 in the year-earlier quarter.

Revenue: Decreased 7.56% to $2.89 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Texas Instruments Inc. reported adjusted EPS income of $0.32 per share. By that measure, the company beat the mean analyst estimate of $0.30. It beat the average revenue estimate of $2.85 billion.

Quoting Management: Rich Templeton, TI’s chairman, president and CEO, made the following comments: “Our revenue and earnings ended the quarter at the high end of our expected range. Customers continued to operate in a real-time mode, maintaining minimal component inventory and ordering parts as they were needed. Our short product lead times, well-positioned inventory and ready manufacturing capacity allow us to respond rapidly to changes in demand.”

Key Stats (on next page)…

Revenue decreased 3.16% from $2.98 billion in the previous quarter. EPS decreased 11.11% from $0.36 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 $0.44 to a profit $0.38. For the current year, the average estimate has moved down from a profit of $1.79 to a profit of $1.62 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)