DOW JONES NEWSWIRES
Texas Instruments Inc. (TXN) on Thursday narrowed its
third-quarter guidance, keeping the midpoint unchanged.
TI now expects earnings of 66 cents to 72 cents a share on
revenue of $3.62 billion to $3.78 billion for the period. It
previously predicted earnings of 64 cents to 74 cents a share on
revenue of $3.55 billion to $3.85 billion, generally better than
analysts' estimates at the time.
In July, the company reported second-quarter results just below
Wall Street's expectations. Although its profit increased sharply
and its quarterly operating profit set a record the results weren't
enough to impress investors, who had expected earnings surprises
similar to those posted by Intel Corp. (INTC) and Advanced Micro
Devices Inc (AMD).
TI, which makes chips used in devices ranging from cell phones
to industrial equipment, has seen a sharp rebound in demand after
the recession caused customers to virtually stop buying chips last
year. The company has been reshaping itself to become the dominant
maker of customized "smart" chips that power and control more
gadgets and applications.
Shares of TI were down 9% in the year to date as of Thursday's
market close.
On Tuesday, logic-chip maker Altera Corp. (ALTR) significantly
increased its third-quarter revenue guidance, citing broad growth.
But bellwether Intel, the world's largest chip maker, late last
month cut its third-quarter revenue forecast, citing
weaker-than-expected consumer demand for mobile personal computers
in the U.S. and Europe.
Analysts at Brigantine Advisors said Tuesday that TI would be
less likely to suffer from a slowdown in spending on personal
computers because of its exposure to broader markets, including
automotive and industrial, where margins are higher and demand
continues to be strong in North America and Europe.
-By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com