CS First Boston cut estimates on Texas Instruments (TXN).
Analyst Charlie Glavin says Q2 EPS was slightly above estimates due to lower taxes and operating expense savings. However, given Q3 guidance, and the corresponding 10 percentage-point drop in Q3 operating margins, Glavin says the company expected to have its first operating loss since 1996. He notes the company said it may be seeing signs of stabilization -- even a bottom -- since orders were declining at a slower rate vs. Q1.
However, Glavin says his recent trip to Asia suggests that further downside risk may exist. He cut the $0.28 2001 EPS estimate to $0.15, and cut the $0.55 2002 EPS estimate to $0.24.
Glavin maintains his hold rating.