Chipmaker Texas Instruments late Tuesday beat estimates for earnings in the third quarter but came up short on sales. TI also missed the mark with its guidance. TXN stock fell in extended trading.
The Dallas-based company earned $1.85 a share on sales of $4.53 billion in the September quarter. Analysts polled by FactSet had predicted TI earnings of $1.82 a share on sales of $4.58 billion. Texas Instruments earnings dropped 25% from the year-earlier period, while sales decreased 14%.
The report marked the company's fourth straight quarter of declining sales and earnings on a year-over-year basis.
"During the quarter, automotive (chip) growth continued and industrial weakness broadened," Chief Executive Haviv Ilan said in a news release.
For the current quarter, Texas Instruments expects to earn $1.46 a share on sales of $4.1 billion. That's based on the midpoint of its guidance. Analysts had been modeling TI earnings of $1.76 a share on sales of $4.5 billion in the fourth quarter. In the same period last year, TI earned $2.13 a share on sales of $4.67 billion.
TXN Stock Drops After Report
In after-hours trading on the stock market today, TXN stock sank 4.5% to 140.30. During the regular session Tuesday, TXN stock advanced 0.4% to close at 146.92.
Year to date through Tuesday's close, TXN stock is up 11%.
Texas Instruments ranks No. 13 out of 32 stocks in IBD's semiconductor manufacturing industry group, according to IBD Stock Checkup. TXN stock has a poor IBD Composite Rating of 52 out of 99.
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