It's shaping up to be a solid quarter for Texas Instruments Inc. (TI), which today narrowed its expected ranges for Q2's revenue and earnings per share (EPS).

TI said it now expects total revenue for Q2 to fall between $3.36 billion and $3.51 billion, compared with the prior range of $3.32 billion to $3.6 billion. Of that, the company expects to collect semiconductor revenue between $3.2 billion and $3.34 billion, compared with the prior range of $3.14 billion to $3.4 billion; and education technology revenue is expected to be between $160 million and $170 million, compared with the prior range of $180 million to $200 million.  
The company said that the lower education technology estimate reflects delays by retailers in stocking their back-to-school calculator inventory until closer to the start of school in Q3.

TI said it expects EPS from continuing operations between 40 cents and 44 cents, compared with the previous range of 39 cents to 45 cents.

Investment firm Lehman Brothers was for the most part pleased with TI's update. "While we believe this reiteration may be below high expectations, we are encouraged by improving profitability in semiconductors and solid order trends," Tim Luke, an analyst with the firm, said in a research note this morning. Luke went on to call TI's stock, which opened today at $34.86, down 2.5 percent from Monday's close, a "core holding in the wireless/analog semiconductor space." Lehman has maintained its $39 price target for TI's stock.

By: DocMemory
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