Should You Buy Texas Instruments After Its Post-Earnings Drop?
Texas Instruments' (NASDAQ: TXN) stock recently tumbled after the chipmaker posted disappointing third-quarter numbers and weak guidance for the fourth quarter. Its revenue fell 11% annually to $3.77 billion, missing estimates by $50 million and marking its fourth straight quarter of declining sales.
TI's net income fell 9% to $1.43 billion as its EPS (buoyed by buybacks) fell 6% to $1.49 but beat expectations by seven cents. However, that figure included a nine-cent tax benefit that wasn't included in TI's prior guidance, so it technically missed Wall Street's expectations.
TI expects its troubles to worsen in the fourth quarter, with a 10%-17% annual drop in revenue and a 14%-28% decline in EPS -- even after including another tax benefit. Analysts had expected TI's revenue to decline just 3% and for its earnings to improve 1%.
Source Fool.com
