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Texas Instruments Inc. shares fell in extended trade Tuesday after the chip maker reported third-quarter revenue below analysts’ expectations and delivered weaker-than-expected guidance.
The chipmaker reported net income of $1.71 billion, or $1.85 a share, compared with net income of $2.295 billion, or $2.47 a share, in the same period last year. Earnings per share included a 5-cent benefit for items that were not in the company’s original guidance, Texas Instruments
TXN,
said in a statement. Analysts surveyed by FactSet were looking for earnings of $1.82 a share.
Third-quarter revenue was $4.532 billion, down from $5.241 billion in the same period last year. Analysts surveyed by FactSet were looking for sales of $4.579 billion. Analog revenue was $3.533 billion, down from $3.993 billion in the prior year’s quarter, and embedded processing revenue was $890 million, up from $821 million in the same period last year. Analysts surveyed by FactSet were looking for analog revenue of $3.296 billion and embedded processing revenue of $887 million.
“Revenue was flat sequentially and decreased 14% from the same quarter a year ago,” Texas Instruments’ CEO Haviv Ilan said in a statement. “During the quarter, automotive growth continued and industrial weakness broadened.”
For the fourth quarter, Texas Instruments said it expects revenue between $3.93 billion and $4.27 billion and earnings between $1.35 and $1.57 a share. Analysts surveyed by FactSet said they are looking for revenue of $4.502 billion and adjusted earnings of $1.79 a share.
The company’s third-quarter inventory was $3.908 billion, up from $2.404 billion in the prior year’s quarter, and an increase of $179 million from the second quarter.
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Texas Instruments’ stock fell 4.5% in extended trades.
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