Texas Instruments surprises and delights shareholders

IN A STATEMENT which sent its share prices shooting up by six per cent, Texas Instruments yesterday reckoned its earnings and revenue for this quarter were still bang on, despite worries caused by mobile phone providers.

Finnish Mobile giant Nokia had sent TI shareholders into a bit of a panic last week after announcing it would have to start more aggressive pricing in the face of a weaker consumer market. The firm uses TI’s analog and wireless chips.

But TI, in a move akin to giving its investors a large dose of Prozac, barely changed its financial forecast at all. As far as revenues are concerned, TI had previously estimated a $3.26 billion to $3.54 billion for the quarter, a figure which has now been only slightly altered to $3.33 billion to $3.47 billion.

Also, back in July, the company predicted earnings of between 41 and 47 cents - slightly below Wall Street estimates – but now the firm has redone its calculations and the results are a barely different 42 to 46 cents a share.

So overcome with joy were traders at this exciting TI accountancy feat, they immediately snapped up shares in the firm, boosting stock prices from $21.71 to $23.01 at closing. µ

L'Inq
New York Times