TXN which is merely the latest company to post weaker than expected earnings in a quarter which so far has been a major disappointment across the board, also has the dubious distinction of being the first company to blame its outlook cut on Japan:
For the second quarter of 2011, TI expects:
- Revenue: $3.41 – 3.69 billion
- Earnings per share: $0.52 – 0.60
This estimate includes a negative impact of about 5 cents for costs resulting from the earthquake and its aftermath in Japan.
As the street was expecting $0.63 this is not good, but the market will promptly forgive this weakness now that every company will start using the Japanese wildcard.
TI also noted the following:
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.
And you can be certain: differ they will.