Chipmaker Texas Instruments late Tuesday beat analyst estimates for the third quarter but guided below views for the current period. TXN stock fell in extended trading.
The Dallas-based company earned $2.47 a share on sales of $5.24 billion in the September quarter. Analysts polled by FactSet expected Texas Instruments earnings of $2.39 a share on sales of $5.14 billion. On a year-over-year basis, TI earnings rose 19% while sales increased 13%.
For the current quarter, Texas Instruments forecast earnings of $1.97 a share on sales of $4.6 billion. That's based on the midpoint of its guidance. Wall Street had predicted earnings of $2.23 a share on sales of $4.94 billion in the fourth quarter. In the year-earlier period, TI earned $2.27 a share on sales of $4.83 billion.
"During the quarter we experienced expected weakness in personal electronics and expanding weakness across industrial," Chief Executive Rich Templeton said in a news release.
Texas Instruments Falls After Report
In after-hours trading on the stock market today, TXN stock sank 5.3% to 153.50. During the regular session Tuesday, TXN stock climbed 0.3% to close at 162.16.
Texas Instruments stock ranks fifth out of 33 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. TXN stock has an IBD Composite Rating of 83 out of 99.
IBD's Composite Rating is a blend of key fundamental and technical metrics to help investors gauge a stock's strengths. The best growth stocks have a Composite Rating of 90 or better.
Texas Instruments makes analog and embedded processing chips for markets such as industrial, automotive, personal electronics, communications equipment and enterprise systems.
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