Texas Instruments' Earnings Beat; Forecast Falls Short
Texas Instrumentsreported second-quarter earnings thatbeat analysts' expectations but its projections for third-quarter earnings and revenue fell short of forecasts.
Shares fell in after-hours trading on Monday. Get the latest after-hour quote here.
The chip maker said it expects third-quarter earnings to be between 41 and 49 cents per share and for revenue to come in between $3.21 billion and $3.47 billion.
Analysts currently expect earnings of 50 cents a share on revenue of $3.54 billion, according to Thomson Reuters.
TI said orders for its chips, which are used in a wide range of products such as cellphones and industrial equipment, started to weaken in June and that orders for shipments due in September are also lighter than expected.
"Although we believe customers and distributors have low inventory levels, the global economic environment is causing both to become increasingly cautious in placing new orders," Chief Executive Rich Templeton said in a statement.
The company reported second-quarter earnings excluding items of 44 cents per share, down from 57 cents a share in the year-earlier period.
Revenue dropped to $3.34 billion from $3.46 billion a year ago.
Analysts had expected the company to report second-quarter earnings excluding items of 41 cents per share on revenue of $3.35 billion, according to Thomson Reuters.
Net income was $446 million, or 38 cents per share for the quarter, compared with $672 million, or 56 cents per share, a year ago.
The company attributed this income drop to acquisition charges associated with TI's acquisition of National Semiconductor, which were $104 million in the second quarter.
TI also incurred $13 million of restructuring charges associated with the closings of two older factories announced in January, according to a company statement.
Thomson Reuters contributed to this report.
