Chipmaker Texas Instruments late Tuesday beat Wall Street's targets for the first quarter and guided above views for sales and in line for earnings for the second quarter. TXN stock rose in extended trading.
The Dallas-based company earned $1.20 a share on sales of $3.66 billion in the March quarter. Analysts polled by FactSet had expected TI earnings of $1.07 a share on sales of $3.61 billion. However, on a year-over-year basis, TI's earnings fell 35% while sales declined 16%.
Texas Instruments has now posted six straight quarters of declining sales and earnings on a year-over-year basis. Analysts see the declines continuing for at least the next two quarters.
For the current quarter, TI predicted earnings of $1.15 a share on sales of $3.8 billion. That's based on the midpoint of its guidance. Analysts were looking for earnings of $1.15 a share on sales of $3.74 billion in the second quarter. In the year-earlier period, it earned $1.87 a share on sales of $4.53 billion.
TXN Stock Rises After Report
In after-hours trading on the stock market today, TXN stock advanced more than 5% to 174.76. During the regular session Tuesday, TXN stock rose 1.2% to close at 165.42.
In a news release, Chief Executive Haviv Ilan said revenue declined across all end markets in the March quarter as TI continues to navigate a cyclical downturn.
TXN stock ranks No. 12 out of 33 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. It has a subpar IBD Composite Rating of 40 out of 99.
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