Transcript Texas Instruments (TXN)

Texas Instruments
(TXN)
Nipun Singh
Yash Maniar
Recommendation
 Buy:
Limit at $25.75
 Sell:
Stop at $27.50
Background
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Founded in 1930; named Texas Instruments in
1951
Based in Dallas, Texas
Total Revenue Last Year: 12.50B
Gross Profit Last Year: 6.24B
Net Income: 1.92 B
What They Make
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Most of its sales comes from the semiconductor
business, not scientific calculators
Biggest applications of chips:
 DVR
 X-Rays
 GPS
 Digital Sound Processing in hearing aids
 DLP TVs
 Blu-Ray
 Mp3
 Finger-Print Biometrics
 Ultrasounds
Current Statistics
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Current Price: $24.18
Range 24.01 - 24.88
52 week 13.70 - 27.00
Open 24.55
Vol/Avg. 18.41M/12.45M
Mkt cap 30.29B
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P/E 33.64
Div/yield 0.12/1.99
EPS 0.72
Shares 1.25B
Beta 1.13
Inst. own 78%
Earnings Report
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Coming out with earnings report Jan. 25, 2010
Expected EPS from Analysts v. Actual Per Year:
Earnings Report
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History of Expected EPS vs. Actual per Quarter
Expected Earnings This Year
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As seen in previous slide, TXN continually
surpasses expectations for earnings
Estimated Earnings this year after Earnings
Report comes out: $0.493
Competitors
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STMicroelectronics
Motorola
Intel
TXN vs. Intel, STM, and Motorola
Competitors
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Analog Devices, Inc
Fairchild
Broadcam
National Semiconductor Corporation
TXN vs. ADI, Fairchild, Broadcam, and NSM
Why Buy?
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Why should we buy?
Intel Corporation had an amazing earning report
recently and according to analysts, this news is
good for Intel’s peers and competitors, because
they are in the same sector
Why not buy its competitors? Texas
Instruments’ earnings report is coming up soon,
and market may cool down by the time of the
other company's earnings reports
Why Buy Over Competitors?
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Analog Devices, Inc: Jim Cramer on his show,
Mad Money, explicitly stated that this stock was
too “hubble” and too risky
Intel: Already soaring due to earnings report,
prices already too inflated
NSM: Texas Instruments is already doing better
than NSM and prices are sure to increase after
its earnings report comes out
Sources
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http://www.reuters.com/article/idUSTRE60D5
XJ20100116?type=globalMarketsNewsI
http://www.google.com/finance?q=txn
http://finance.aol.com/quotes/texasinstruments-incorporated/txn/nys
The End