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US Stocks Fall on Thursday

GuruFocus.com ·  Jan 23, 2020 19:57

U.S. stocks were in the red on Thursday on the back of global concern regarding the coronavirus outbreak in China. The Dow Jones Industrial Average fell 0.23% to 29,118, the S&P 500 index declined 0.10% to 3,318 and the Nasdaq Composite Index rose 0.04% to 9,387.

Non-index stocks havealsoposted gains and losses recently.Shares ofTexas Instruments Inc. (NASDAQ:TXN)fell 0.3%onThursdayafterthe companyannouncedfourth-quarter 2019 results. The company postedearningsof$1.11per share,beatingestimatesby7cents.Revenueof$3.35billionalso beatexpectations by $140 million.

TXN 30-Year Financial Data

The intrinsic value of TXN

Peter Lynch Chart of TXN

For the quarter, thegross marginwas62.6%, down210 basis points from theprior-year quarter. Selling, general and administrative expensesdeclined120 basis pointsyearover year to $412 millionandresearch and development expensesinched up70 basis pointsto $414 million when compared to a year ago. The operating margin was37.3%,down350 basis points from last year.

Cash flow from operationswas$6.6 billion for the yearand free cash flow was $5.8 billion, accounting for 40% of revenue.

Moreover, the company returned cash to investors through$6 billioninstockrepurchases and dividends.

Looking ahead to thefirst quarter of 2020, the companyexpectsrevenue between $3.12 billion and $3.38 billion and earnings per share in the range of 96 cents to $1.14.

During the quarter endedSept.30,Al Gore(Trades,Portfolio)reducedhisstake by5% to5,483,228shares.MarioGabellireduced his position to 150,819 shares. On the other hand,Ken Fisher(Trades,Portfolio)increasedhis holdingby1.5% to467,683sharesand TomGaynerboosted his position by 4% to 703,500 shares.

Gainers

L Brands Inc. (NYSE:LB) +4.5%

Kinder Morgan Inc. (NYSE:KMI) +3.8%

Union Pacific Corp. (NYSE:UNP) +3.1%

Western Digital Corp. (NASDAQ:WDC) +3.1%

General Electric Co. (NYSE:GE) +2.9%

Losers

VF Corp. (NYSE:VFC) -8.6%

Edwards Lifesciences Corp. (NYSE:EW) -5.2%

Freeport-McMoRan Inc. (NYSE:FCX) -5.1%

Fox Corp. (NASDAQ:FOX) -3.8%

Global m arkets

The main European stock markets tradedin the red.The U.K.'s FTSE 100fell0.85%, France's CAC 40slid0.65%, Germany'sDaxdipped0.94% and Spain's Ibex 35slipped0.58%.

In Asia, Japan'sNikkei 225fell0.98%, India's BSE Sensexgained0.66%, Hong Kong's Hang Sengretreated1.52% and China's Shanghai Compositesank 2.75%.

Disclosure:The author holdsno positions in any stocks mentioned.

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This article first appeared onGuruFocus.

TXN 30-Year Financial Data

The intrinsic value of TXN

Peter Lynch Chart of TXN

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