Tuesday, March 13, 2012

Investopedia: Will Warnings Derail The Chip Recovery?

Sometimes a surprise isn't really that surprising. Once again, both Altera (Nasdaq:ALTR) and Texas Instruments (Nasdaq:TXN) have warned that quarterly revenue is going to be slightly worse than previously expected. Given the sell-off in the chip sector since February, and the relatively modest reaction to the news, it sounds like investors had already begun to bake in expectations for a slightly slower or stretched-out recovery. (For more, see Earning Forecasts: A Primer.)

Texas Takes down the Numbers  
All things considered, the revision at Texas Instruments is far from monumental. The midpoint of guidance now calls for a sequential revenue contraction of 11%, versus a prior expectation of 8%. In real numbers, that amounts to $100 million out of about $3.1 billion.

Please click here for more:
http://stocks.investopedia.com/stock-analysis/2012/Will-Warnings-Derail-The-Chip-Recovery-TXN-ALTR-ONNN-ADI0313.aspx

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