Texas Instruments beats by $0.03, reports revs in-line; guides Q4 below consensus
Reports Q3 (Sep) GAAP earnings of $0.56 per share, $0.03 better than the Capital IQ Consensus of $0.53; revenues fell 4.3% year/year to $3.24 bln vs the $3.22 bln consensus. Sept 10 mid-quarter update, co narrowed Q3 EPS guidance to $0.51-0.55 from $0.49-0.57; co narrowed rev guidance to $3.15-3.29 bln from $3.09-3.35 bln.
Co issues downside guidance for Q4, sees GAAP EPS of $0.42-0.50 vs. $0.51 Capital IQ Consensus Estimate; sees Q4 revs of $2.86-3.10 bln vs. $3.11 bln Capital IQ Consensus Estimate.
"Our revenue in the quarter was up 6 percent sequentially. Excluding the legacy wireless products, revenue grew 10 percent sequentially. Our book-to-bill ratio was 0.97, consistent with an expected seasonal revenue decline in the fourth quarter. Analog and Embedded Processing are now 80 percent of TI's revenue, eight points higher than a year ago. The combined revenue from these two businesses grew 10 percent sequentially and 7 percent from a year ago. Our legacy wireless products declined to less than 2 percent of revenue.