Texas Instruments posted third-quarter results that beat Wall Street’s estimates late Monday, but the chip giant’s forecast left a little to be desired.
TI’s pro forma earnings of 42 cents a share beat estimates by 2 cents, and sales rose 10% to $3.59 billion, topping $3.55 billion forecasts. The company also boasted rising margins and falling inventories, both signs of strong demand.
TI cited strong wireless, high-performance analog and DLP sales for its results.
But looking forward, TI said it expects fourth-quarter earnings of 36-40 cents a share — below 41-cent forecasts — on sales of $3.42-$3.73 billion. The earnings outlook might be skewed to the downside because the company recently began expensing options, but the lower end of the sales range would clearly disappoint analysts, who were looking for $3.63 billion in fourth-quarter sales.
TXN shares fell 4% after hours.
Stocks rocketed higher during the day after the Bush Administration named White House economic advisor Ben Bernanke to replace Fed Chairman Alan Greenspan when he retires in January. Bond traders were a little more skeptical, as bond yields ended the day higher.
The Nasdaq soared 33 to 2115, the S&P 500 surged 20 to 1199, and the Dow soared 170 to 10,385. Volume declined to 2.18 billion shares on the NYSE, and 1.59 billion on the Nasdaq. Advancers led 25-8 on the NYSE, and 22-8 on the Nasdaq. Upside volume was 86% on the NYSE, and 81% on the Nasdaq. New highs-new lows were 65-86 on the NYSE, and 84-59 on the Nasdaq.
Computer Sciences soared 11% on takeover speculation.
Rediff soared 28% after reporting a profit, and J2 Global
jumped 6% on its results. Silicon Labs
surged 21% on its results.
Unisys fell 19% on reports that the company may have overbilled the federal government.
Veeco lost 6% on its results.
