July 23 – Texas Instruments (NASDAQ:TXN) shares fell more than 10% in pre-market trading Wednesday after its third-quarter revenue outlook came in below Wall Street estimates, despite delivering stronger-than-expected results for the second quarter.
The chipmaker reported Q2 revenue of $4.45 billion, topping the $4.36 billion analyst consensus, and earnings per share of $1.41, also ahead of the expected $1.35. Net income rose 15% year over year to $1.3 billion.
Analog chip revenue, the company’s core segment, climbed 18% to $3.5 billion, exceeding projections. The growth was driven by demand from the automotive and industrial markets.
However, Texas Instruments guided Q3 revenue in the range of $4.45 billion to $4.8 billion, with a midpoint slightly below the $4.59 billion consensus. The company also forecast EPS between $1.36 and $1.60, bracketing analysts’ $1.50 average.
Shares had been up 15% year to date before the report, helped by broader enthusiasm in the semiconductor sector. The company recently committed $60 billion toward U.S. chip factory expansion, a plan supported by the Trump administration’s domestic tech push.
This article first appeared on GuruFocus.
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