The last full week of January is going to be a big one for earnings reports. Technology earnings are going to be the biggest news, and that is especially true with many major semiconductor names reporting. Last week, we heard from Intel (INTC), who despite problems due to flooding in Asia, beat their downwardly revised estimates. Intel posted a record year, and the major question for the firm is can they keep margins up. Many do not believe so, and as we know, gross margins are a key to this industry's success.
This week, a fair amount of semiconductor names report, so here's the breakdown of those reporting. I'll start off with the biggest one.
Texas Instruments (TXN) - Monday, after bell: We get started early in the week when this semi giant reports Monday afternoon. The company is expected to see revenues decline in the year over year period, as well as earnings per share to decline by about 50%.
Like Intel, Texas Instruments warned earlier in the quarter that their results would not be as good as initially planned. In early December, the company lowered its revenue guidance for the quarter from a range of $3.26 billion to $3.54 billion to a new range of $3.19 billion to $3.33 billion. That's a lowering of $140 million at the midpoint. They also took down their earnings per share guidance from a range of $0.28 to $0.36 to a new range of $0.21 to $0.25. Those numbers are on a GAAP basis.
Currently, analyst expectations are for revenues of $3.25 billion, and earnings per share of $0.39. I believe that the EPS number from analysts is non-GAAP, otherwise you would think that the company is about to post a major miss.
For the full year, the company is expected to post revenues of $13.57 billion, a decline of nearly three percent. Earnings per share are expected to decline as well, from $2.62 to $2.12. Looking forward into 2012, estimates currently call for revenues to rebound by over 2%, but earnings per share are expected to be flat to down on the year.
The company is not going to post a great quarter when looking back at the prior year, but the warning given in December is already baked into the stock. The company does pay out a roughly 2% dividend per year, and the stock is trading at the upper end of its 52-week range. We've seen a bunch of decent reports from the chip names recently, so I wouldn't be surprised if the company beats its lowered guidance.
Advanced Micro Devices (AMD) - Tuesday, after bell: Another big name reporting this week when AMD releases its fourth quarter and full year results. For the fourth quarter, the company is expected to see revenues rise by 4% to $1.72 billion and earnings per share increase by 2 cents to $0.16. For the full year, the company is expected to see revenues rise by about 1.5% to $6.59 billion. However, earnings per share are expected to decline by a penny to $0.48. AMD is small in size when you compare it to Intel and Texas Instruments, but it is a big name in the industry. The real question is can this name continue to compete with the big boys over the long term.
Rambus (RMBS) - Thursday, after bell: The memory chip company is expected to post a 10% decline in revenues for the fourth quarter to $82 million, and is forecast to post a three cent loss in earnings. For the full year, revenues are expected to decline by nearly 5% to $308.5 million. The company is also expected to post a 13 cent annual loss versus the prior year's $1.30 gain. However, the company is currently expected to see revenues rebound slightly in 2012, are current expectations call for a profit in the current year.
Sandisk (SNDK) - Wednesday after bell: The memory chip and card maker is expected to post strong growth in revenues this week. For the fourth quarter, the company is expected to see an 18.6% rise in revenues to $1.57 billion. However, earnings per share are expected to decline by a penny to $1.26. For the full year, earnings per share are expected to rise by 17.3% to $5.66 billion. Earnings per share are expected to be flat at $4.60. Current projections call for double digit revenue and earnings growth in 2012.
RF Micro Devices (RFMD) - Tuesday, after bell: The radio frequency and semiconductor name is expected to post a decline in both quarterly and yearly numbers on Tuesday. For the fourth quarter, revenues are estimated to decline by 19.3% to $225 million, while earnings per share are expected to fall from $0.19 to $0.03. For the full year, revenues are expected to decline by 15.6% to $887.4 million, and earnings per share are expected to fall from $0.62 to $0.25. Both revenues and earnings per share are expected to rebound in 2012.
Cirrus Logic (CRUS) - Thursday, after bell: The semiconductor name is expected to post strong improvement in both its quarterly and yearly numbers. For their fourth quarter, revenues are estimated to rise by 27.5% to $121.95 million, and earnings per share to increase by 9 cents to $0.43. For the full year, revenues are expected to increase by 13.5% to $419.4 million, and earnings per share to increase by 6 cents to $1.30. Current expectations for 2012 call for double digit percentage increases in both revenues and earnings per share.