by Christopher Freeburn | October 23, 2012 10:42 am
Texas Instruments (NASDAQ:TXN) announced on Thursday third-quarter revenue that beat expectations, but it projected current=quarter sales below analysts’ estimates.
The computer chipmaker said it earned $784 million during the third quarter, up from $601 million in the same period last year. EPS came in at 67 cents, up from 51 cents in 2011. Quarterly revenue was $3.39 billion, down from $3.47 billion last year, but narrowly topping the $3.34 billion that analysts had forecast, Reuters noted.
However, company officials said they expected a fourth-quarter profit of between 23 cents and 31 cents a share on revenue ranging from $2.84 billion to $3.07 billion. That missed the revenue of $3.24 billion that Wall Street anticipates for the current quarter.
Shares of Texas Instruments slipped more than 1% in Tuesday morning trading.
TI attributed the weak forecast to slackening demand for computer chips, especially in Europe and China. The company said its customers were avoiding large inventories of products.
Declining demand was also translating to production slowdowns at its factories, the company noted, though it did not reveal the extent.
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