Texas Instruments Sees Decline in Profits; Beats Estimates (TXN)

Semiconductor manufacturer, Texas Instruments Incorporated(TXN) reported a drop in earnings on Wednesday, but beat analyst expectations.

The Dallas, TX based company reported fourth quarter earnings of $264 million, or 23 cents per share, down -11% from $298 million, or 25 cents per share last year. Excluding special items, EPS came in at 36 cents for the quarter, beating analysts estimate of 34 cents per share.

TXN reported revenue of $2.98 billion, down from $3.42 billion last year, and beating analysts estimate of $2.95 billion.

The company reported that although earnings in the fourth quarter were in line with their prior estimates, sales were on the lower end of the estimated range due to customers continuing to keep low inventories.

For the first quarter, TXN reported that sales may drop below the company’s estimated revenue range of $2.69 billion to $2.91 billion. Earnings are expected to be in the range of 24 cents to 32 cents per share.

Texas Instruments shares were down 26 cents, or -0.78% during premarket trading Wednesday. The stock has been mostly flat in the past year.

The Bottom Line
Shares of Texas Instruments (TXN) have a 2.51% dividend yield, based on last night’s closing stock price of $33.46. the stock has technical support in the $30-$31 price area. If the shares can firm up, we see overhead resistance around the $34-$36 price levels.

Texas Instruments Incorporated(TXN) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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