Texas Instruments Narrows Sales, Earnings Guidance
Texas Instruments narrowed earnings and revenue guidance for the third quarter after U.S. markets closed Tuesday.
The semiconductor company said it now expects quarterly earnings in a range of 49 cents to 53 cents a share, compared with previous expectations of 46 cents to 52 cents a share.
Texas Instruments shares fell more than 2% in extended trading Thursday, after closing 1.42% higher during market hours.
The Dallas-based company, a leading supplier of chips for cell phones, also said it expects revenue in a range of $3.56 billion and $3.72 billion, compared with earlier guidance of $3.49 billion to $3.79 billion.
During a conference call with analysts on Tuesday evening, the company said orders from customers were up in the third quarter compared with the second quarter, driven by sales of analog chips.
"Quarter-to-date, orders have been up from the level of the second quarter," said Ron Slaymaker, TI's vice president of investor relations.
The company said its new earnings guidance range includes 2 cents in gains from the July sale of its chip line for DSL communications equipment that's installed at customer locations.
On July 23, Texas Instruments forecast earnings of 46 cents to 52 cents per share on revenue of $3.49 billion to $3.79 billion, with the midpoint of the range at $3.64 billion.
The update comes a day after Texas Instruments detailed plans to lay off 191 workers whose manufacturing jobs in Dallas are being eliminated and who couldn't find other positions at the semiconductor company.
The layoffs will begin in early November and be spaced out until the end of January, the Dallas-based company said. The workers will be put on paid leave for 60 days after their release, the company said.
Texas Instruments is also finishing the last of 233 layoffs from two other facilities in Dallas by year end.