Texas Instruments (TXN), the multinational American, U.S.-based company that produces semiconductors and various integrated circuits along with analog chips and embedded processors, announced their fiscal quarterly earnings after the market closed on January 23rd, 2017.

Unfortunately the reaction was not pretty as soon as the news was released. Shares sold off hard on volume. The stock has been in a current uptrend that has shown some extreme relative strength.

However, after today’s earnings results it will be interesting to see how much support there will be in the share price based upon support and resistance in the chart. The company which pays a 2% dividend per year, closed at $119.89 in the regular trading session. However, shares were down 6.85% or down $8.21 closing at $111.68 as of 8 p.m. Eastern Standard Time.

The Numbers

The company reported some of the negative effects on their earnings were due to the recent United States tax reform laws.

If the effects from the tax reform are removed for comparison, the earnings were reported at $1.09 per share which was in line with what analysts had been expecting. Net revenue was even slightly higher than analysts expected and rose about 9% from a year ago.

Analyst And Company Comments

CEO Rick Templeton had this to say in a press release,

“Revenue increased 10 percent from the same quarter a year ago. Demand for our products continued to be strong in the industrial and automotive markets.

Dave Heger, an analyst at Edward Jones & Co. had this to say after the numbers came out,

“Expectations were running high. You needed a solid beat and raise. Instead you got in line.”

Texas Instruments Chart

(Click on image to enlarge)

The above price chart shows Texas Instruments during the regular trading session on the left. On the right you can see where the earnings announcement was released just after the market closed and shares sold off hard on volume.