CHICAGO, March 10, 2011 /PRNewswire/ -- Zacks.com Analyst Blog features: Texas Instruments' (NYSE: TXN), Intel Corp (Nasdaq: INTC), Corning (NYSE: GLW), Microsoft Corp (Nasdaq: MSFT) and Nokia (NYSE: NOK).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=4579
Here are highlights from Wednesday's Analyst Blog:
Texas Instruments Outlook Narrows
There was not much out of the ordinary in Texas Instruments' (NYSE: TXN), or "TI" mid-quarter update. The company narrowed its guidance (as it usually does) to Rev/EPS of $3.34-$3.48 billion/$0.56-$0.60 from $3.27-$3.55 billion/$0.54-$0.62 and stated that end market trends were tracking in line with normal seasonality.
The only exception was the PC business, which was slower than expected in February. TI attributed the slowdown to another supplier's processor chip recall, obviously referring to Intel Corp's (Nasdaq: INTC) Cooger chipset. However, TI assured that demand was already picking up and that tablet demand remained strong, in line with expectations.
We were a little surprised that TI did not see any improvement at television customers, since glassmaker Corning (NYSE: GLW) reported significantly stronger demand from the LCD TV market in the last quarter, suggesting that the inventory glut had cleared.
Industrial holding out flat with the fourth quarter is an encouraging sign, as is the strength in automotive (driven by incentive-driven spending as well as increasing electronic content per vehicle).
The wireless baseband business is going to be seasonally down (as expected) and TI remains on track to phase it out by the first quarter of 2013.
Management stated that the recent agreement between Microsoft Corp (Nasdaq: MSFT) and Nokia (NYSE: NOK) would not unduly hurt its revenue, since the company was in any case phasing out the baseband business with Nokia (TI is the exclusive supplier to Nokia and decided to divert R&D effort to higher-margin areas a couple years ago).
TI does not expect any inventory accumulation at distributors, and expects sell-in to be similar to sell-out in the quarter.
The Zacks Rank on TI shares is #3, which translates into a short-term Hold recommendation. Our longer-term view remains Neutral.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5514.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5516
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment
Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=4580.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/ZacksResearch
Join us on Facebook: http://www.facebook.com/ZacksInvestmentResearch
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Web Content Editor
SOURCE Zacks Investment Research, Inc.