TXN Stock: Texas Instruments offers a mixed view
Texas Instruments (TXN) beat analysts’ estimates for the fourth quarter late Thursday but gave mixed guidance for the current period. TXN stock slipped in extended trading.
The Dallas-based chipmaker earned $1.30 on December sales of $4.01 billion. Analysts polled by FactSet had expected Texas Instruments to earn $1.21 a share on sales of $3.88 billion. Year-over-year, TI’s earnings per share fell 13 percent, while sales fell 2 percent.
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For the current quarter, Texas Instruments expects earnings of $1.05 billion on sales of $3.9 billion. It is based on the midpoint of the perspective. Analysts were looking for earnings per share of $1.17 on sales of $3.85 billion in the first quarter. In the same period last year, TI earned $1.20 billion on sales of $3.66 billion.
Texas Instruments has been dealing with elevated inventories due to a cyclical downturn in demand, particularly for automotive and industrial chips. Other end markets, including personal electronics, communications equipment and enterprise systems, are starting to recover, analysts say.
“Our $6.3 billion operating cash flow for the next 12 months underscores the strength of our business model, the quality of our product portfolio and the benefits of 300mm production,” CEO Haviv Ilan said in a statement. News release. “Free cash flow for the same period was $1.5 billion.”
In after-hours trading on the stock market today, shares of Texas Instruments fell more than 4% to 191.92. During the regular session Thursday, TXN stock rose 1.8% to close at 200.58.
Texas Instruments stock has been consolidating at a 220.39 buy point over the past 11 weeks, it said. IBD market controversy Charts. That buy point is an all-time high reached on November 8.
TXN stock ranks No. 7 out of 31 stocks in the IBD Semiconductor Manufacturing Industry Group. IBD Stock Check. But Texas Instruments has an IBD Composite rating of 46 below 99.
Patrick Seitz at X, formerly of Twitter, at @IBD_PSeitz For more stories on consumer technology, software and semiconductor stocks.
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