Texas Instruments Inc. Chip earnings season with some cautious signs.
The chipmaker, which reports historically early in the earnings cycle and is seen as a leader in the semiconductor industry, called out “increasing weakness in the industry and a sequential decline in the auto industry” as it came in coy with its outlook for the current quarter.
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The company expects revenue of $3.45 billion to $3.75 billion for the current quarter, along with 96 cents to $1.16 in earnings per share. The FactSet consensus was $4.05 billion and $1.40 per share, respectively.
Shares fell 4.5% in aftermarket trading Tuesday.
Texas Instruments reported fourth-quarter net income of $1.37 billion, or $1.49 per share, compared with $1.96 billion, or $2.13 per share, in the corresponding period a year earlier. The FactSet consensus was $1.47 per share, although the company said earnings per share included a 3-cent benefit that was not factored into its original forecast.
Revenue fell 13% from a year earlier, coming in at $4.1 billion and roughly matching the FactSet consensus view. The company saw a 12% decline in analog revenue and a 10% decline in revenue from embedded processing; Sales from the company's “other” business category, which is much smaller, fell 25%.
