TXN lowering guidance. PE is only 12.3 X and dividend yield is 1.6%. Semiconductors/Semiequip are cyclical industries, and often the cyclical top in a stock after peak earnings are achieved for the cycle, and vice versa for the cyclical low. The stock may look cheap on PE basis, but as earnings evaporate, it can get expensive looking real fast, hence the term “value trap”.
08-Jun-11 16:43 ET In Play Texas Instruments drops ~5% on disappointing guidance; now at 31.08 in after-hours (32.67 -0.60) -Update :
08-Jun-11 16:31 ET In Play Texas Instruments narrrows and lowers Q2 guidance (32.67 -0.60) -Update : Co lowers earnings guidance to $0.51-0.55 vs $0.58 Capital IQ Consensus Estimate, from $0.52-0.60 and lowers revs guidance to $3.36-3.50 bln vs $3.55 bln Capital IQ Consensus Estimate, from $3.41-3.69 bln. Conf. call begins at 5:00pm EST.
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