Texas Instruments shares sank Wednesday after the chipmaker topped expectations for the first quarter but offered guidance below views for the current period. TXN stock dropped nearly 3% on the news.
The Dallas-based company late Tuesday said it earned $1.85 a share on sales of $4.38 billion in the March quarter. Analysts polled by FactSet had expected earnings of $1.77 a share on sales of $4.37 billion. On a year-over-year basis, Texas Instruments earnings fell 21% while sales declined 11%.
"During the quarter we experienced weakness across our end markets with the exception of automotive, as expected," Chief Executive Haviv Ilan said in a news release.
For the current quarter, Texas Instruments predicted earnings of $1.75 a share on sales of $4.35 billion. That's based on the midpoint of its outlook. However, analysts had projected earnings of $1.82 a share on sales of $4.44 billion in the second quarter. In the same quarter last year, Texas Instruments earned $2.45 a share on sales of $5.21 billion.
TXN Stock Falls After Report
On the stock market today, TXN stock dropped 2.9% to close at 164.46. During the regular session Tuesday, TXN stock sank 3.7% to 169.39, amid an overall down day for the market.
The company's shares rank seventh out of 30 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup.
Texas Instruments has an IBD Composite Rating of 84 out of 99. The Composite Rating scores a stock's key growth metrics against all other stocks, regardless of industry group.
Moreover, TXN stock is on the IBD Tech Leaders list.
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