Reporting 2nd quarter earnings results after the closing bell on Monday, Texas Instruments (TXN) managed to meet the Zacks Consensus Estimate of 62 cents per share, on revenues of $3.5 billion in the quarter. This marks the first time in the past 5 quarters that Texas Instruments failed to post a positive surprise.
However, year over year, the company’s numbers are very impressive: its 62 cents per share in the quarter beat Q209’s 25 cents per share by 148%. First quarter EPS amounted to 52 cents, for a 19.2% improvement.
Analysts had been busy upwardly revising estimates prior to the earnings report. In the past month, 3 analysts had raised estimates for the quarter and 5 had done so for fiscal 2010. What’s more, the magnitude of the Zacks Consensus Estimate was notable — up nearly 20% for the June quarter over the past 90 days, and up from $2.09 per share to $2.39 per share for the fiscal year.
Texas Instruments also raised its expectations for earnings in the 3rd quarter to 64-74 cents per share. The Zacks consensus has been sitting at 64 cents for the past month.
Disappointingly, however, Texas Instruments did not provide any change to fiscal 2010 guidance. At $2.39 per share for the year, this would imply 4th quarter earnings of only 51-61 cents. Perhaps the company is planning to upwardly revise 4th quarter and fiscal year numbers when it updates 3rd quarter expectations on September 9th.
In the meantime, Texas Instruments has a Zacks #2 Rank (Buy), reflecting the positive estimate revisions leading up to today’s earnings report. We also have a longer-term Neutral recommendation on TXN shares. That said, however — just like we are seeing with IBM (IBM) post-earnings after the bell — investors do not appear too impressed with Texas Instruments merely hitting their target. Shares are down 5.6% after-hours.
Read the full analyst report on “TXN”
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