FLASH: Texas Loses Again

Reports Q3 (Sep) earnings of $0.60 per share, excluding $0.09 in items, $0.03 better than the Capital IQ Consensus Estimate of $0.57; revenues fell 7.3% year/year to $3.47 bln vs the $3.31 bln consensus. Co issues guidance for Q4, sees EPS of $0.43-0.51, excluding $0.15 in non-recurring items, vs. $0.54 Capital IQ Consensus Estimate; sees Q4 revs of $3.26-3.54 bln vs. $3.32 bln Capital IQ Consensus Estimate. TI’s third-quarter 2011 gross profit and operating profit were negatively impacted by costs associated with lower levels of factory utilization in the quarter as the company lowered production in response to weaker demand, as well as charges for inventory obsolescence on certain custom programs. These were partially offset by a net benefit resulting from proceeds from ongoing insurance claims associated with the March earthquake in Japan. The company used $450 million in the quarter to repurchase 14.1 million shares of its common stock and paid dividends of $148 million. “Our revenue for the third quarter was higher than we expected though, overall, the quarter was below the seasonal average. We expect the same in the fourth quarter as economic uncertainty continues to weigh on demand in almost every major market segment in which we operate. We are well prepared to continue to gain share in our core businesses, no matter the economic conditions.”