Texas Instruments Shares Fall on Lower Forecast
Shares of Texas Instruments slipped Wednesday after the chip maker did not raise its sales forecast as some investors expected.
In its mid-quarter update, the Dallas-based technology company said late Tuesday it now expects third-quarter sales of $3.56 billion to $3.72 billion. The company's previous outlook forecast sales of $3.49 billion to $3.79 billion.
ThinkEquity Partners analyst Robert Burleson wrote in a research report some investors expected the outlook to be slightly better.
Texas Instruments' primary business is making chips that power cell phones, and Burleson said he thought things were going better in that industry. He said he was surprised by management's subdued tone on the conference call.
Burleson said he still believes Texas Instruments could top the midpoint of its forecast range.
Shares of Texas Instruments slipped about 1.5% Wednesday. The stock closed Tuesday at $35.72, up 24 percent for the year.