Texas Instruments, Inc. Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Texas Instruments, Inc. (NYSE:TXN) will unveil its latest earnings on Monday, October 24, 2011. Texas Instruments designs and makes semiconductors that it sells to electronics designers and manufacturers all over the world.

Texas Instruments, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of 57 cents per share, a decline of 19.7% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 64 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 57 cents during the last month. For the year, analysts are projecting profit of $2.25 per share, a decline of 9.6% from last year.

Past Earnings Performance: The company topped estimates last quarter after missing forecasts the quarter prior. In the second quarter, it reported net income of 56 cents per share against a mean estimate of profit of 53 cents per share. In the first quarter, it missed forecasts by 3 cents.

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Wall St. Revenue Expectations: Analysts are projecting a decline of 11% in revenue from the year-earlier quarter to $3.33 billion.

Analyst Ratings: 18 out of 33 analysts surveyed (54.5%) have a buy rating on Texas Instruments.. This is below the mean analyst rating of 10 competitors, which average 58.5% buy ratings.

A Look Back: In the second quarter, profit fell 12.6% to $672 million (56 cents a share) from $769 million (62 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.1% to $3.46 billion from $3.5 billion.

Key Stats:

A year-over-year revenue decrease in the second quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 5.8%in the first quarter, 17.3% in the fourth quarter of the last fiscal year and 29.9% in the third quarter of the last fiscal year.

The decrease in profit in the second quarter broke a streak of three consecutive quarters of year-over-year profit increases. Net income rose 1.2% in the first quarter, 43.8% in the fourth quarter of the last fiscal year and 59.7% in the third quarter of the last fiscal year.

Competitors to Watch: National Semicond. Corp. (NYSE:NSM), Analog Devices, Inc. (NYSE:ADI), Intersil Corporation (NASDAQ:ISIL), Linear Technology Corp. (NASDAQ:LLTC), ON Semiconductor Corp. (NASDAQ:ONNN), Intel Corporation (NASDAQ:INTC), STMicroelectronics N.V. (NYSE:STM), Maxim Integrated Products Inc. (NASDAQ:MXIM), Broadcom Corporation (NASDAQ:BRCM), and Marvell Tech. Group Ltd. (NASDAQ:MRVL).

Stock Price Performance: During August 22, 2011 to October 18, 2011, the stock price had risen $5.73 (22.8%) from $25.16 to $30.89. The stock price saw one of its best stretches over the last year between September 8, 2011 and September 16, 2011 when shares rose for seven-straight days, rising 7.8% (+$2.02) over that span. It saw one of its worst periods between July 7, 2011 and July 14, 2011 when shares fell for six-straight days, falling 8.2% (-$2.73) over that span. Shares are down $1.23 (-3.8%) year to date.

(Source: Xignite Financials)

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