Tuesday, April 19, 2011

Texas Instruments (TXN) Misses on Net Income

Texas Instruments (NYSE:TXN) traded lower in after hours action as the company on average missed analysts' expectations for net income for its latest quarter.

Net income increased during the quarter to $666 million, or 55 cents a share, versus $658 million, or 52 cents a share in the same quarter last year. Analysts had been looking for an average of 57 cents a share for the quarter.

Revenue for the quarter jumped from $3.2 billion to $3.39 billion year-over-year.

Rich Templeton, TI chairman, president and chief executive officer, said, “2011 started strong, with customer demand in January and February tracking our expectations for a first quarter of above-seasonal growth. But the Japan earthquake that’s taken such a heartbreaking human toll in the country also disrupted local demand starting in mid-March and impaired operations at two of our factories there. This impact and substantially weaker demand for Wireless baseband chips resulted in revenue that was below the middle of our expected range. The lower revenue combined with expenses resulting from the earthquake affected earnings per share. New orders, however, were strong through the quarter, indicative of the underlying strength in our markets.”

Texas Instruments closed Monday at $34.79, falling $0.20, or 0.57 percent. After hours it fell to $34.20, down $0.50, or 1.44 percent.

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