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TI Posts Results in Line With Views, but Shares Tumble

Texas Instruments on Monday posted a quarterly profit that matched what analysts expected, but posted revenue slightly below analyst expectations due to a shortfall from one key mobile phone customer

Texas Instruments
Texas Instruments

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However, shares of the chipmaker fell more than 6 percent in extended trading. Get after-hour quotes for Texas Instruments here.

TI reported second-quarter earnings of 62 cents a share, matching Wall Street's views. Sales of $3.49 billion were slightly lower than the $3.52 billion forecast from analysts.

TI earned 20 cents a share during the same period last year on revenue of $2.36 billion.

In addition, the chipmaker adjusted its revenue guidance for the current quarter to between $3.55 billion and $3.85 billion and earnings guidance to a range of 64 cents a share to 74 cents a share.

Wall Street analysts expected sales for the current quarter of of $3.59 billion, and earnings of 64 cents a share.

While TI said current quarter results could be better than Wall Street expectations, Chief Financial Officer Kevin March said revenue in the second quarter was hurt by one customer ordering fewer chips than expected.

"They did not pull the inventory we'd expected in the quarter," said March without disclosing the customer's name.

TI's biggest wireless chip customer, Nokia, had warned during the quarter that its phone sales would be weaker than it had anticipated.

TI shares closed at $25.56 in the regular New York Stock Exchange session. Volume exceeded 13 million shares before the closing bell.

"The guidance looks pretty good, the market seems to be looking past the guidance and seems more concerned that this (quarter's revenue) starting point is a little lower than people had hoped," said Doug Freedman, analyst at Gleacher & Co.