Chipmaker Texas Instruments (TXN) late Tuesday easily beat Wall Street’s targets for the first quarter, but guided lower for the second quarter. The Texas Instruments earnings report caused TI stock to waver in extended trading.
The Dallas-based company earned $1.26 a share on sales of $3.59 billion in the March quarter. Those results included a discrete tax benefit of 4 cents a share that was not in the company’s original guidance. Analysts expected Texas Instruments earnings of $1.13 a share on sales of $3.49 billion, according to Zacks Investment Research. In the year-earlier period, TI earned $1.21 a share on sales of $3.79 billion.
TI stock initially jumped as much as 5.4% in after-hours trading on the stock market today. But soon the stock reversed on the company’s weak outlook. It was down 2.3% in late trades. During the regular session, it climbed 1.2% to 116.38.
Demand For TI Chips Has Slowed, CEO Says
“Revenue decreased 5% from the same quarter a year ago as demand for our products continued to slow across most markets,” Chief Executive Rich Templeton said in a news release. “In our core businesses, analog revenue declined 2% and embedded processing declined 14% from the same quarter a year ago.”
For the second quarter, Texas Instruments expects to earn $1.22 a share on sales of $3.6 billion. That’s based on the midpoint of its guidance.
Wall Street was modeling Texas Instruments earnings of $1.25 a share on sales of $3.68 billion in the June quarter, Zacks said. In the year-earlier quarter, TI earned $1.37 a share on sales of $4 billion.
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