Texas Instruments announced third-quarter results late Tuesday, surpassing market expectations for both earnings and revenue. However, the company's outlook for the current quarter disappointed investors, missing analysts' forecasts.
For the September quarter, the Dallas-based chipmaker reported earnings of US$1.47 per share on revenue of $4.15 billion, versus market expectations of $1.38 per share with revenue of $4.12 billion.
The figures represent a year-over-year decline of 21% in earnings and an 8% drop in sales, underscoring the industry's ongoing challenges.
Texas Instruments included a minor 3-cent benefit in its earnings per share, related to items not included in the initial guidance.
Looking ahead, the company projects fourth-quarter earnings at $1.18 per share on revenue of $3.85 billion, based on the midpoint of its guidance.
Wall Street had anticipated a higher estimate, predicting earnings of $1.34 per share on sales of $4.06 billion. In the corresponding quarter last year, Texas Instruments posted earnings of $1.49 per share on revenue of $4.08 billion.
The company has now seen eight consecutive quarters of year-over-year declines in both sales and earnings as it navigates a cyclical downturn in semiconductor demand, with growth expected to return in the first quarter of 2025.
Commenting on the quarterly results, Texas Instruments CEO Haviv Ilan noted: “Our cash flow from operations of $6.2 billion for the trailing 12 months again underscored the strength of our business model, the quality of our product portfolio and the benefit of 300mm production."
At the close on (AEDT) Wednesday October 23, Texas Instruments stock price (TI) was US$193.97, experiencing a slight decrease of 0.9% from the previous day. The stock saw a day low of US$192.85 and a day high of US$195.3. It has a market cap of US$177.1 billion. After hours, it was trading around US$201.12, a gain of around 7.15 points or 3.7%.