A previous version of this article incorrectly stated that Analog Devices is fabless. The article has been corrected and the Fool regrets the error.
Yet that still wasn't good enough for the Street. Shares took a 5% hit this morning, amid cries of "Disappointing! Give us more!"
TI didn't exactly miss estimates. Rather, the company failed to beat them. Sales were supposed to land at $3.512 million according to Thomson/Reuters polls, which makes the disappointment a mere rounding error to a precision of two decimals. TI does more than anybody to keep investors updated on the business outlook, and this quarter landed smack in the middle of the latest update range.
Maybe TI should rip a page from the Apple
The "new TI" is focusing on high-margin analog chips and high-performance mobile processors, while moving out of legacy businesses such as infrastructure chips for wireless phone services. Through a smart acquisition strategy, in which the company picks up manufacturing facilities across the globe for pennies on the dollar, TI has built a real competitive advantage over smaller competitor Analog Devices
I don't give much weight to the guidance game, and I don't think you should, either. For the record, TI's worst division this quarter was the wireless segment, where operating profits more than tripled, while sales improved by "only" 18%. Cry me a river.
Oh, and next quarter's sales should land in the $3.55 billion-to-$3.85 billion range, with earnings between $0.64 and $0.74 per share. But take that forecast with a grain of salt.
Fool contributor Anders Bylund holds no position in any of the companies discussed here. Google is a Motley Fool Rule Breakers selection. Apple is a Motley Fool Stock Advisor recommendation. The Fool owns shares of Google. Try any of our Foolish newsletters services free for 30 days. You can check out Anders' holdings and a concise bio if you like, and The Motley Fool is investors writing for investors.