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Fourth Time Is The Charm: Texas Instruments Slashes Outlook... Again
Just in case anyone thought Texas Instruments was joking the first, second, or even third time previously, here is the company to cement that the feces have really hit the fan, as it has been warning for almost a year contrary to what bleary eyed optimists wanted to believe.
In a scheduled update to its business outlook for the fourth quarter of 2011, Texas Instruments Incorporated (TI) (NYSE: TXN - News) today narrowed and lowered its expected ranges for revenue and earnings per share (EPS). The reductions are due to broadly lower demand across a wide range of markets, customers and products, except for Wireless applications processors.
The company currently expects its financial results to be within the following ranges:
- Revenue: $3.19 – 3.33 billion compared with the prior range of $3.26 – 3.54 billion
- EPS: $0.21 – 0.25 compared with the prior range of $0.28 – 0.36.
Can one finally say: global recession?
Below are the traditionally useless sellside analysts,, and the history of company Earnings revisions. The chart is anything but pretty.
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This is actually bullish. The expectations were for a larger cut. </sarc>
How long have we got before we get the large scale war to distract us?
Anytime a company doesn't announce that its bankrupt, its bullish
ALTR just warned also....double bullishness?
Especially in retail, as it means same-store sales for surviving shops will increase as a direct result of decreased competition.
Survivorship bias. Whenever I wrote trading routines ignoring this, it became easier to make a profit during tests. Why not run a country that way?
why do you need calculators when you have billion chinese?
Maybe it's time they reissued this:
http://www.computerhistory.org/tdih/img/11June_1.jpg
TI died shortly after they released the TI59.
I work on the Dallas TI campus for a spin off from TI. The entire campus was once filled with TI's best R&D, production and financial services. Now, it is half filled with other companies (like mine) and it is just a shadow of it's former self with empty buildings. No more R&D. Just one TI production facility. Now the mismanaged parent company is dying.
If we let corrupt corporate America rule without limitations, this will be the result of all our society.
Market Rally time!!!!!
More at feces clogged Santa's fan and splattered his entire workshop and elvin staff. How many edible iPad stocking stuffers will he stuff now ya think?
I'm sure this is just an isolated incident. All of the reports coming out of the government have been rosy as ever. Maybe TI hasn't updated their model for the 8.9% unemployment rate...
Cramer will spin this in AAPL's favor.
Apple failed at its trendline today.
building a base
Bullish if you think that at some point lower guidance will be surpassed.
2012 Food-stamps for Semiconductors Act.
Looks like a margin collapse, also.
When all else fails Washington takes us to war. Lots of effort to pounch on Iran.
The nerve! How dare they sit on our oil?
The business sector doesn't know what to do.
With China, the new home base for most multinational corporate manufacturing facilities, built at great cost even if using cheap labor, crashing and burning, CEOs & CFOs are silently mulling over whether to even acknowledge that the disaster that is The Bernank, has set their hair on fire with his idiotic ZIRP4EVER and Printonium 9000 Monetary Policies, which have resulted in the destruction of organic demand and have set into motion what will be epic margin compressions, at a time when bankrupt sovereigns have to get bailed out by other bankrupt sovereigns (in order to keep their governmental operations functioning).
The snake continues to devour its own tail.
This is what happens when FOMC Doves don't have their pie holes duct taped shut.
This is what happens when the imbeciles of financial engineering garner a 41% share of U.S. GDP (vs the 11% they held in 1968), and buy the government and the regulators. #DeepCapture
This is what happens when Central Banksters refuse to allow equity and bond holders to take the pain, which will be severe, that will bring back the old-fashioned notion that with investing comes risk (they'll learn this even more painfully, though).
This is what happens when The Bernank breaks all markets.
I agree, except for one minor thing.
Bernanke's just a pawn. He's an elect, who they can tear down just as easily as he was put into place.
Real power prefers secrecy. I've got "Tragedy & Hope" lined up for re-read over the xmas period. Quite looking forward to it...
One thing is for sure; unless someone stops him, and who in our competent government would dare do such a thing, The Bernank has a lot more damage to do.
Keep printing, Bernankio. In fact, monetize European Debt, now, too ( 12-08 16:21: NY Fed says that ECB borrowings totalled USD 2.1bln at the Fed USD-...,) since you never faced consequences for lying under oath when you testified to Congress that you wouldn't monetize U.S. Debt.
Bernanke's just towing the line. The very second he refuses, he will run into an embarrassing episode in a hotel room.
Oh, they already used that script.
I should have been more clear.
There's no question that you're correct in that The Bernank is staying true to form with the Modern Money Mechanics playbook, IMO.
Ron Paul asked The Bernank if gold was "money."
I wish he would have asked The Bernank if he thought we could have any recovery (despite the fact that the way the Fed reports economic growth is inherently perverted, but I digress) without a larger batch of debt/credit being extended and absorbed by hopped up crack smokers than that which was extended and absorbed during all prior boom (prior to the busts) cycles, such as dot.coms and housing.
TI still makes stuff... who knew.
For serious. Last TI product I got was a scientific calculator back in HS.
You probably have one of their products in your cell phone.
And in your car, your computer, your country's weapon systems, and on and on. Their chips go into a wide range of products..... which is why it is so bullish(in today's frothy market) for TI to announce demand is weakening in the markets they serve.
But seriously, they are a good quarter upstream of everything else, because it takes three months to fabricate a chip, and most of what they make doesn't get started in the fab until and when it has been ordered. Their orders looking forward are weakening. Ergo strong global recession signal.
Are they really so big as to be a bellweather for the Global economy?
Me too TI35II, the first solar one they had. I just threw it out this year! The calculator actually worked fine, it was the display that finally crapped out. It was hugely expensive for back then (if I remember right, $189, late 70's), but was one of the best investments I ever made. Stuff isn't made like that anymore. Sigh.
TI got out of retail stuff and mostly does analog/digital, RF chips and such. There is probably a TI chip in just about every cell phone/pda/rf widget in the world so if they are seeing problems then.....
Recession ? What recession? I thought the wealth effect would eliminate a recession.
The iron ore and steel sector have been signaling global recession...FOR MONTHS!
Wireless market is being boosted by demand for Apple's newest product - the "idog phone". Since everyone has one, Apple is now creating a product for the only living thing that does not own an Apple product - the family dog. It will contain special bark recognition software that allows your dog to speak commands while he is sniffing another dog's butt.
Market up on this new announcement!
Next years Black Friday calculators normally $8.00 each for a quarter.
Texas Instruments will soon copy from the playbook of GE, and start a toxic debt finance division, make hundreds of billions in bad loans to non-credit worthy borrowers, and then have The Bernank (via the use of taxpayer money) bail them out, taking what will be debt instruments worth 3 cents on the dollar off their balance sheet at 100% face value.
This is also known as:
TI lost a buttload of mony on Auction Rate Securities. Look at their balance sheets in 2008-2009. Half a $billion went from "cash" to "long term investments" and it wasn't spent on stock buybacks and options for executives, like the rest of their cash went.
My long term indicators have continued to warn of USD strength and EURO weakness and these signals have increased since 2009. The overdue dollar rally should be substantial.
http://stockmarket618.wordpress.com