Texas Instruments Earnings: Stock Down, Technology Continues to Disappoint

Although profit increased, S&P 500 (NYSE:SPY) component Texas Instruments Inc.’s (NYSE:TXN) net income missed estimates in the first quarter. Texas Instruments, Inc. designs and makes semiconductors that it sells to electronics designers and manufacturers all over the world.

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Texas Instruments Earnings Cheat Sheet for the First Quarter

Results: Net income for Texas Instruments Inc. rose to $666 million (55 cents/share) vs. $658 million 52 cents/share) YoY. A rise of 1.2% from the year earlier quarter.

Revenue: Rose to $3.39 billion from $3.2 billion.

Actual vs. Wall St. Expectations: TXN fell short of the mean analyst estimate of 57 cents/share. Estimates ranged from 54 cents per share to 61 cents per share.

Quoting Management: “2011 started strong, with customer demand in January and February tracking our expectations for a first quarter of above-seasonal growth,” said Rich Templeton, TI chairman, president and chief executive officer. “But the Japan earthquake that’s taken such a heartbreaking human toll in the country also disrupted local demand starting in mid-March and impaired operations at two of our factories there. This impact and substantially weaker demand for Wireless baseband chips resulted in revenue that was below the middle of our expected range. The lower revenue combined with expenses resulting from the earthquake affected earnings per share. New orders, however, were strong through the quarter, indicative of the underlying strength in our markets.”

Key Stats:
The company has now seen net income rise in three-straight quarters. In the fourth quarter of the last fiscal year, net income rose 43.8% and in the third quarter of the last fiscal year, the figure rose 59.7%.

Over the last five quarters, revenue has increased 29.8% on average year over year. The biggest increase came in the first quarter of the last fiscal year, when revenue rose 53.6% from the year earlier quarter.

Competitors to Watch: Intel Corporation (NASDAQ:INTC), National Semiconductor Corporation (NYSE:NSM), Analog Devices, Inc. (NYSE:ADI), QUALCOMM Incorporated (NASDAQ:QCOM), Broadcom Corporation (NASDAQ:BRCM), Marvell Technology Group Ltd. (NASDAQ:MRVL), Intersil Corporation (NASDAQ:ISIL), Maxim Integrated Products Inc. (NASDAQ:MXIM), STMicroelectronics NV (NYSE:STM).

Performance: Shares are down more than 2% in after hours trading.

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