Texas Instruments Inc. (TXN), the global semiconductor manufacturer, provided a mid-quarter update for the fourth quarter on Dec 8.
The company raised its earnings per share guidance and also narrowed the range to 47 cents to 51 cents from 42 cents to 50 cents. The Zacks Consensus is holding at 46 cents, for now. Analysts have not yet completed their revisions, which will be sure to come.
Texas Instruments also narrowed the revenue range by raising the lower end of its prior guidance to $2.9 billion to $3.02 billion from $2.78 billion to $3.02 billion.
The company has a solid recent history of surprising on estimates. It has beaten 4 quarters in a row by an average of 141.07%.
Check out its earnings surprise history since 2005 below:
Analysts Bullish on 2010
Even before the mid-quarter update from the company, analysts were already turning bullish, especially about 2010.
The 2009 Zacks Consensus Estimate rose 10 cents to $1.10 per share in the last 60 days.
But it is in 2010 in which investors should expect to really see the growth. Analysts expect 2010 earnings to grow by 56.24% over 2009. The 2010 Zacks Consensus has jumped 11% in the last 60 days to $1.72 from $1.55 per share.
Fundamentals
Texas Instruments is a Zacks #2 Rank (buy) stock. It has a solid 1-year return on equity (ROE) of 13.02%. It also rewards shareholders with a dividend currently yielding 1.82%.
See the 2-year chart below:
Tracey Ryniec is the Value Stock Strategist for Zacks.com. She is also the Editor in charge of the market-beating Zacks Value Trader service.
