Topic: Growth Stocks

TEXAS INSTRUMENTS INC. $35 – Nasdaq symbol TXN

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: 3.0; Dividend yield: 3.2%; TSINetwork Rating: Average; www.ti.com) is receiving more orders for its analog chips, which convert sounds and temperatures into digital signals that computers can understand. Manufacturers use analog chips in a wide variety of products, including cars, medical devices and home appliances.

Texas Instruments now expects revenue of $2.80 billion to $2.91 billion in the first quarter of 2013. That’s up from its earlier forecast of $2.69 billion to $2.91 billion. It also expects to earn $0.28 to $0.32 a share in the quarter, up from its prior forecast of $0.24 to $0.32.

As well, Texas Instruments has raised its quarterly dividend by 33.3%, to $0.28 a share from $0.21. The new annual rate of $1.12 yields 3.2%. The company also added $5 billion to its share repurchase authorization. It can now buy back up to $8.4 billion of its shares, or 22% of its market cap. There is no time limit for these purchases.

Texas Instruments is a buy.

Comments

Tell Us What YOU Think

You must be logged in to post a comment.

Please be respectful with your comments and help us keep this an area that everyone can enjoy. If you believe a comment is abusive or otherwise violates our Terms of Use, please click here to report it to the administrator.