Texas Instruments Narrows Profit, Sales Outlook
Texas Instruments narrowed a quarterly earnings and revenue target range it issued in April because of caution among its chip customers and weak demand for high-end phones.
TI, which makes chips used in everything from cell phones to industrial equipment, forecast second-quarter earnings per share of 43 cents to 47 cents on revenue in a range of $3.33 billion to $3.46 billion.
Shares of the company were unchanged in extended trading.
On April 21, TI disappointed investors with a forecast for earnings per share of 42 cents to 48 cents on revenue of $3.24 billion to $3.5 billion.
Before the mid-quarter update, analysts had, on average, expected net earnings per share of 46 cents on revenue of $3.38 billion, according to Reuters Research.
The Dallas-based company said Monday it expected semiconductor revenue in the quarter of $3.17 billion to $3.28 billion, compared with the previously given range of $3.08 billion to $3.32 billion.
Shares in TI, which earns 35 percent of its revenue from phone chips and about 40 percent from analog chips used in many electronics products, have rebounded by about 8 percent since April as investors bet analog demand was holding up.
TI shares rose 9 cents, or less than 1 percent, to close at $31.33 on Monday.