Back to top

Analyst Blog

Recently, Texas Instruments (TXN - Analyst Report) or "TI" narrowed its revenue and earnings expectations for the fourth quarter of 2013.

The chipmaker now expects sales of $2.92 billion–$3.04 billion versus its previous guidance of $2.86 billion–$3.10 billion. The earnings outlook has also been narrowed to 44 cent–48 cents per share from 42 cents–50 cents.

Though the chipmaker has tightened its guidance range, the mid-point remains unchanged. According to data compiled by Bloomberg, analysts expect sales of $2.99 billion, slightly above the mid-point of management’s guidance of $3.98 billion. However, earnings expectations of 46 cents were in line with management’s guidance.

Management stated that while the demand for its chips used in automotives market is improving, orders from other industrial customers are weakening.

Like other chipmakers, TI has struggled in the recent quarters due to a slow global economy and weak consumer spending. To maintain the growth momentum, the company responded in part by cutting costs and trying to expand the use of its application processors on embedded solutions for the automobile, industrial and other non-consumer markets, which have a longer life cycle.

Texas Instruments is one of the largest suppliers of analog and digital signal processing integrated circuits. The company’s compelling product line-up, increasing differentiation in its business, restructuring activities and lower-cost 300-mm capacity should drive earnings in the longer term. In the second quarter, TI posted decent results, with the top-line numbers surpassing our expectations.

Other Stocks to Consider

Currently, Texas Instruments has a Zacks Rank #3 (Hold). Other stocks that are performing well at current levels include Intersil Corp. (ISIL - Snapshot Report), Syntel Inc. (SYNT - Snapshot Report) and Silicom Ltd. (SILC). All these stocks carry a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
RPC INC RES 24.91 +8.35%
LITHIA MOTO… LAD 94.59 +4.60%
DELTA AIR L… DAL 39.15 +3.90%
FLAMEL TECH… FLML 14.51 +3.50%
SOUTHWEST A… LUV 28.87 +2.92%