Texas Instruments Incorporated's 2Q Results: Postgame Scorecard

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Texas Instruments Incorporated (NASDAQ:TXN) saw its profit decline in the second quarter.

Earnings and Revenue The company's revenues met Wall Street's expectations, though the company's EPS fell short of predictions. The company reported EPS of 38 cents a share versus the 39 cents a share estimate and revenues of $3.33 billion versus the $3.35 billion estimate. The estimates of 21 analysts ranged from profit of 33 cents to profit of 43 cents.

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The company's net income for the quarter was $446 million. This is a 33.6% decline from last year. Revenue fell 3.6% from $3.46 billion in the same period last year.

Company Fundamental Trends Revenue has fallen in at least each of the past four quarters.

History Against Expectations The company missed forecasts after topping estimates in the previous two quarters. In the first quarter, it topped the mark by 3 cents, and in the fourth quarter of the last fiscal year, it was ahead by 2 cents.

Official Comment: "TI revenue in the second quarter was about as we had expected," said Rich Templeton, TI's chairman, president and CEO. "Our Analog and Embedded Processing segments grew sequentially, while our Wireless segment declined. Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders. Our backlog grew last quarter but orders slowed in the month of June and our backlog coverage for September is lower than normal. As a result of this increased uncertainty, we currently estimate that our revenue in the third quarter will be about even with last quarter and below our seasonal average growth rate. If customer demand increases as the quarter progresses, we are ready to support higher shipments with short product lead times, a strong inventory position and available manufacturing capacity. In the meantime, we remain focused on strengthening our market positions in Analog and Embedded Processing. These areas are complementary and benefit from TI's extensive and expanding relationships with customers around the world. As we continue to broaden our portfolio of leadership products, especially our standard catalog products, we enhance our ability to serve these customers."

Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.