Texas Instruments Cuts Guidance

Tyler Durden's picture

In a scheduled update to its business outlook for the second quarter of 2011, Texas Instruments Incorporated (TI) (NYSE: TXN) today narrowed and lowered its expected ranges for revenue and earnings per share (EPS).

The company currently expects its financial results to be within the following ranges:

  • Revenue:  $3.36 – 3.50 billion, compared with the prior range of $3.41 – $3.69 billion
  • EPS:  $0.51 – 0.55, compared with the prior range of $0.52 – 0.60

So you are saying the initial guidance reduction from April 18 was not... transitory?

And here is the wildcard that will be used over... and over... and over....

TI specifically notes that circumstances arising out of the recent earthquakes and tsunami in Japan,
including disruptions and increased costs of TI's production,
disruptions in our supply chain (including utilities) and reduced or
delayed demand from customers, could cause actual results to differ from
the expectations of TI or its management.

Oh differ they will.

In the meantime, stocks realize just how thin the line from transitory to permanent is.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cursive's picture

Cramer's hedge fund buddies arecon the phone to him now advising how to keep his idiot listeners in "Texan."

JuicyTheAnimal's picture

Just a longer period of transitory....unless of course we experience more weather or what not...then an even longer period of transitory. 

Cursive's picture

Stick with Cramer and stick with Texan.

Dreadker's picture

Oh this next two months is gonna be fun ;-)  There will be so many cliff drop graphs posted on your site Tyler... You might as well just leave the deer in the headlights photo permanently stickied to the top ;-)

Franken_Stein's picture


No one could have seen this coming, I'm tellin' ya !

No one.


i love cholas's picture

I have a feeling 4th of July weekend is going to be blamed somehow.

oogs66's picture

we are in a heat wave now, and hurricane season coming up, so the excuses are already built in


Agent P's picture

With respect to TXN, the Japan excuse is no bullshit.  Their Japanese fab took a major hit in the earthquake (damaged facility and lost inventory).  I believe this fab was around 15% of their analog production (most important segment) and 50% of DLP.  Some production shifted to other fabs, with Japan expected to be back online in September at the earliest.  Add to that the troubles at their Japanese customers and it's not surprising they're still feeling the pain three months later...a time frame I would argue has yet to cross from transitory to permanent.

duo's picture

The fab you mention is about halfway to Fukushima from Tokyo (maybe a little less).  It would need reliable electric power to be up and running, and September (when A/C use is down) would have to be the earliest. 

The fab also needs clean, non-radioactive water, and employees.

Agent P's picture

I hear you.  The September estimate is/was the company's best case scenario, not mine.  I saw this about two months ago, so they may have revised it since then, and back then that estimate was predicated on no additional damage from aftershocks.

Anyway, my main point was that the "Japan card" will be overplayed by many companies / government officials, but in TI's case it's legitimate.

ursus.peracto's picture

Peak Binary gadget sh!t.



Cdad's picture

The Nanosecond Money crew has, in record time, discovered the good news contained within the bad news.  To summarize, "It's Texan specific."  So the stock specific bad news bears continue to stack up like cord wood, but the market itself is a screaming buy.

There you go.  No matter what the news, the news is always good at the BlowHorn [CNBC].  This has been a public service announcement of hope from the NBC marionettes and the criminal syndicate Wall Street bankers that hold their strings.

carbonmutant's picture

Bungie jumping "dip buyers" attracted to lowered  guidance...

vfsv-fl's picture

Yet the stock is now trading after-hours (5:54pm EDT) @$32.71 after closing at $32.67?

kito's picture

mens wearhouse cleared the hurdle..must lots of black suit purchases for the impending funeral of the u.s this year

turds in the punchbowl's picture


i just want to say thanks for the ti89. without it, my college years would have been hairier than a fondue eating contest at the special olympics. dont listen to what these aholes say about you - they're just jealous of your mad skillz.



ThirdCoastSurfer's picture

You know it's always something.  

If they take out Gaddafi on a weekday the market is going chase all the shorts to the margin (call).  

JuicyTheAnimal's picture

Just a longer period of transitory....unless of course we experience more weather or what not...then an even longer period of transitory.