Semis breaking down AH, SMH down nearing $33 a share! Not looking good for tech in general again, spx breaking down, end of QE2 is winding down, tomorrow is going to be an interesting day. June 8, 2011, 4:41 p.m. EDT TI sees lower, narrower quarterly outlook range By Wallace Witkowski TXN SAN FRANCISCO (MarketWatch) -- Texas Instruments Inc. said late Wednesday it expects a lower, narrower range of earnings and revenue for the second quarter. The chip maker sees second-quarter earnings of 51 cents to 55 cents, compared with a previous range of 52 cents to 60 cents, on revenue of $3.36 billion to $3.5 billion, compared with a previous range of $3.41 billion to $3.69 billion. Analysts surveyed by FactSet Research estimated a quarterly profit of 57 cents a share on revenue of $3.55 billion. Shares of Texas Instruments fell 4.7% to $31.15 in after-hours activity.
Actually that was expected and it is a very good outlook in this market. TXN should rally to $35 to bear's surprise. TXN trims down the md Q outlook and then delivers in its highest estimate.
No position in TXN but they said it was one customer (think NOK) that is the source of the decline in EPS, otherwise the company says everything is on track. I thought it was Japan but the news is hinting at NOK being the problem. Here's an interesting scenario that is playing out: What happens to a company with a lot of cash on the balance sheet but has products no one wants? This is NOK.
Who cares if it was one customer which brought the decline in revenue and eps for txn, they still had to lower their outlook, how does one think this is a positive for txn.....This news is bad news no matter which way you look at it, could txn move higher tomorrow, of course it can, anything can happen however anyone throwing money into txn is wasting their time.
It's part of the game. TXN is just moving the goalpost a little bit so it can beat the numbers next month. And by saying everything else is fine, it could be interpreted as a signal that they will beat the number. If they don't, then WTF!!! AAII #'s are out Bulls : 24.4% Neutral : 27.9% Bear : 47.7% This is ridiculous.
Analysts will use this 40 days to accumulate the shares in weakness and after the earnings, they will call the stock a strong buy and then will unload their shares in strength. My opinion: TXN is a strong buy now. Better than TXN is ADI