Texas Instruments Jumps in AH on Revised Outlook

Shares of Texas Instruments (TXN) gained 5% to $34.30 in late trading Monday, following the company's revised Q4 outlook in which it raised the low-end of its guidance, with the high-end still exceeding analyst expectations. Texas Instruments now sees Q4 EPS of $0.50 to $0.54, versus $0.48 to $0.54 previously, on revenues between $3.5B to $3.66B, compared to its prior estimate of $3.4B to $3.68B. Analysts were expecting $0.51/share on sales of $3.56B. Texas Instruments shares fell 8% on Oct. 23 after the company beat Q3 EPS estimates, but lowered its Q4 guidance (full story). Regarding concerns over slowing mobile phone chip sales due to heightened competition and increased multi-sourcing among customers, V.P. Ron Slaymaker commented, "It's still weak compared to what you might seasonally expect, but at the same time, it's doing a little better than we had expected in October," (financial update call transcript). Texas Instruments rose 0.6% to $32.67 in normal trading. Its main competitors are QCOM, STM and BRCM. Texas Instruments is among the top-holdings of ETFs SMH and IGW.

Sources: Goldman Cuts Estimates, Targets for Slew of Tech Stocks • Semiconductors Prepared to Knock Your SOX Off

Seeking Alpha's news briefs are combined into a pre-market summary called Wall Street Breakfast. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up.