Texas Instruments’ Earnings In-Line; Revenue/Guidance Mixed (TXN)

Texas Instruments Inc.

just reported that Q2 earnings came in at $0.62 per share on $3.50 billion; this compares to the Street consensus of $0.62 per share on revenue of $3.52 billion. The whisper number for TXN was $0.64 per share. For the third quarter of 2010, TI expects revenue of $3.55 to $3.85 billion and earnings per share of $0.64 to $0.74. This compares to the Street consensus of $0.64 per share on revenue of $3.59 billion. "Our Analog and Embedded Processing businesses turned in double-digit sequential growth, outpacing their respective markets and again confirming their ability to positively impact the financial performance of TI. As a result, we delivered our highest-ever quarterly operating profit," said Rich Templeton, TI chairman, president and chief executive officer. He added, "Orders were strong in the quarter, backlog increased and we expect to grow revenue again in the third quarter. Our steady investments in production capacity, even through last year's downturn, are now allowing us to meet higher demand levels from customers and simultaneously reduce lead times, which we believe is not only in the best interest of our customers, but will also help us gain share.” Shares of TXN, which closed higher by 3.15%, at $25.55, were lower in the after-hours session by 5.64%. Texas Instruments Incorporated is engaged in the designing and making of semiconductors that it sells to electronics designers and manufacturers worldwide. In addition, it sells calculators and related products.