Shares of analog chip manufacturer Texas Instruments (NASDAQ:TXN) fell 5.77% in the morning session after the company reported second quarter results that beat analysts' revenue and EPS expectations. On the other hand, its underwhelming revenue guidance for the next quarter was disappointing, and its gross margin declined. Additionally, the company burned cash compared to the positive cash inflows reported in previous quarters. Management added that Texas Instruments "experienced weakness across our end markets with the exception of automotive." Overall, this was a mixed quarter for Texas Instruments.
What is the market telling us:
Texas Instruments's shares are not very volatile than the market average and over the last year have had only 2 moves greater than 5%. In context of that, today's move is indicating the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
Texas Instruments is up 7.5% since the beginning of the year, and at $175.51 per share it is trading close to its 52-week high of $186.08 from July 2023. Investors who bought $1,000 worth of Texas Instruments's shares 5 years ago would now be looking at an investment worth $1,550.
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