Weak PC sales hurt Texas Instruments

Article Excerpt

TEXAS INSTRUMENTS INC. $35 (Nasdaq symbol TXN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 1.1 billion; Market cap: $38.5 billion; Price-to-sales ratio: 3.2; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) continues to benefit from its focus on analog chips, which convert inputs like touch, sound and pressure into electronic signals. Carmakers and other industrial clients continue to buy more of these chips from the company. However, its sales to makers of computers and video game consoles remain weak. The company recently said that it expects revenue of $2.99 billion to $3.11 billion in the second quarter of 2013. The midpoint of that range— $3.05 billion— missed the consensus estimate of $3.06 billion. The company also expects earnings of $0.39 to $0.43 a share. The midpoint of $0.41 matched the consensus forecast. Texas Instruments is a hold. hold…