Semiconductor maker Texas Instruments Incorporated (TXN) late Wednesday raised its third quarter profit and revenue guidance, citing higher production rates from its customers.
The Dallas-based company said it now expects third quarter earnings of 37 to 41 cents per share, up from prior guidance for 29 to 39 cents per share. The new estimate surpasses that of Wall Street analysts, which expect 36 cents per share, on average.
TI also boosted its third quarter revenue outlook range to $2.73 billion to $2.87 billion, compared with a previous view of $2.5 billion to $2.8 billion. Analysts expected a lower number of $2.68 billion.
Texas Instruments shares were mostly flat in morning trading Thursday.
The Bottom Line
We have avoided shares of TXN since our early June coverage began last year, when the stock was trading at $31.24. The company has a 1.75% dividend yield, based on last night's closing stock price of $25.14. The stock has technical support in the $19-$20 price area. If the shares can firm up, we see overhead resistance around the $25-$28 price levels. We would remain on the sidelines for now.
Texas Instruments Incorporated (TXN) is not recommended at this time, holding a Dividend.com DARS Rating of 3.4 out of 5 stars.
